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FINANCIAL TIMES 


Telephone lir Informal ton 

London 629 8151 : Manchester 228 6752 


No. 28,759 


PUBLISHED IN LONDON AND FRANKFURT 

Tuesday April 27 1982 


***3Gp 




Bryant 
Properties 

FOrrtlUALrrV^EVELOPMENTS 
fN THE SOUTH AND MIDLANDS 

. 021?: 704 - 5111 


CONTINENTAL SELLING PRICES: AUSTRIA Seh. IS: BELGIUM Fr3h DENMARK Kr6.50: FRANCE Fr5.<»; GERMANY DM Z.D: ITALY L 1,000: NETHERLANDS FI 2J5; NORWAY Kr 6.00: PORTUGAL Esc 50: SPAIN PtaBS; SWEDEN 


SWfiffi£L§&& FrlO; EIRE 42p; MALTA 30 b 


NEWS SI MM \m 




*p-t u. 

,-X 

- •Tf 






2ENERAL 


BUSINESS 


Israelis £ rises 

fire on on $ ? 

Palestine gold up 
protestors $2.75 


fsracli troops' fired on Pales- 
1 tinian demonstrators In the 
. occupied West Bank as Egyptian 
: '■President Hosni Mubarak 
.marked. Cairo’s first full day of 

- control over the Sinai fn nearly 
16 years by calling on other 

: Arab countries to make peace 
with Israel. 

But be criticised Israel’s 
■ policy of expanding Jewish 
.settlements on ithe West Bank, 
'.-which he said “cannot but 
heighten turmoil in the area.'’ 

- He said he looked forward to 
„ resumption of talks with Israel 
on self-rule for Palestinians on 
the West Bank. Back Page 

Fire ‘accidental’ 

--. Italian investigators believe a 
cigarette dropped accidentally 
or short circuit caused Sunday’s 
fire that killed 34 in an antique 
exhibition in Todi near Perugia. 

. Earlier story, Page 3 

: NHS strike claim 

The Confederation of- Health 
Service Employees claimed 
widespread support on the first 
day of its industrial action over 
. pay. Page 8_ 

Vienna shooting 

An Austrian security guard 
dded of a gunshot wound at the 
French trade mission in Vienna 
in what police described as a 

- mysterious incident. 

£290,000 award 

Lenny Darwood, 17, of dee- 
thqipes was awarded £250,000 
i damages after an . aflqcgjff re 
©pdrailras- in 1978 Ifift him' 
blind and crippled’ because he 
; was deprived of oxygen. 

Activists fined 

- Fines totalling £560 were 
Imposed on 24 people after 
Saturday’s animal rights demon- 
stration at the chemical .wea- 
pons establishment Porton 

’ Down, Wiltshire. 

Korchnoi plea 

Viktor Korchnoi; the Soviet 
defector who twice failed to win 
the world chess championship, 
made a surprise appearance at 
a Loudon tournament lo plead 
for the release of his family 
from the Soviet Union. 

1 Aboriginal warns 

Leading aboriginal activist Gary 
Foley said be expects his 
people’s blood to be shed in 
planned demonstrations in 
Brisbane, Australia, during 
October’s Commonwealth Games. 

Pole wins prize 

Detained Polish dissident author 
Adam Michnik has been 
awarded the annual Prix de la 
Liberie by the French section 
of the Pen Club for writers.^ 

Volcano erupts 

The 8,280 ft Japanese volcano 
Mt Asama erupted for the first 
time in nine years, scattering 
ash on parts of Tokyo. None 
were reported; hucL 

Women now 42% 

Women make up 42 per cent of 
the 153,968 British applicants 
for university courses starting 
in the autumn. Page 8 

Chinese census 

China’S first population- census 
since 1964 begins On July 1. It 
will be conducted by more than 
5m officials. The last count was 
723m. Conservative estimates 
are now lba. 

Briefly . . - 

Lebanon’s 340 judges went on 
strike for a 40 per cent pay rise. 
The Penlcc lifeboat disaster 
appeal fund reached £3m. 
Earthquake measuring Richter 
4.5 shook western Indian cities. 
Dame Celia Johnson, star of the 
film Brief Encounter on 1945, 
died aged 73. Obituary, Page 17 
Mafia boas Frank Three 
Fingers" Coppola died in a 
clinic near Rome, aged 83. 


• STERLING rose 45 points to 
dose in London at ¥ 1-7 76, but 
slipped to DM 4J1175 (DM 4-23), 
SwFr 3.457 (SwFr 3.4S5), 

• l ■ - . ■ 

L Sterling 

"**78tA (a, London) - 


fjwr fai ai m 


CHIEF PRICE CHANGES YESTERDAY 

(Prices to pence unless otherwise indicated) 

RISES* LASMO 360 + 10 

Benlox 29 + 4 Doontfontein 790 + 42 

Clarke (Clement)..; 1S6 + 4 JoTwifr Cons - 

Euro oean Ferries 75 + 4 Pbsttdon ................ Iiv + II 


RISES: 

Benlox 29 + 4 

Clarke (Clement)..; 136 + 4 

Crowther fJ.) 25+3 

European Ferries 75 + 4 

Fisher (A) 43 + 4 

GKN 165 + 4 

Hawker Siddeley'... 328 + 4 

Jarvis (J.) 341 + 39 

Lonsdale Universal 72 + 6 

Lyles (S.) 81+3 

Simon Eng, 373 + 10 

Tern-Consulate 46+8 

- Travis &■ Arnold 179 + 11’ 
Willis Faber 475 + .10 
Clyde Petroleum ... 106 + 5 


Rustenburg Platinum 190 + 8 
FALLS: 

Land Securities ... 274 <— 7 

Lloyds Bank* .408 — 10 

MEPC H4 — 6 

Energy Cap. 30 — 15 

Global Nat. Res. ... 690 - 115 

NCC Energy 35*- 2Q 

McLeod Rnssel 295 ^ 23 

“ Prices at suspension 


Pressure on Argentina grows 


BY PETER RIDDELL, POLITICAL EDITOR 


.GoWPriceJ 

\ UondW H 


[ 1 April 1982 1 

FFr 10.985 (FFr 11.045) and 
Y243.5 - (Y247.5). Its trade- 
weigtRed index was 89.5 (89.8). 
Page 32 ‘ 

• DOLLAR fell to DM 2.3745 

(DM 2.387), SwFr 1.9565 
(SwFr L969) and Y238.4 
(Y24L3). Its trade-weighted 
index was 114J2 (11L9). Page 
32 - 

• GOLD rose 92.75 in London 
to close at 8355.25. 

.• EQUITIES: the FT 30-sfaare 
index dosed 0.9 higher at 568. 
Page 31 

• GILT’S: the Government 
Securities Index slipped only 
0.02 to 67.59. Page 3l 

• WALL STREET was Z65 ap 
at 864-82 near the closed Page.3Q 

CM ." PRESIBKNT, Sir . 
Raymond Penaoek. named the. 
31 members of the cbnfedera- 
tioh's most influential committee 
for tile' first time. Page 6* 

• UK BANK TAXATION re- 
view is planned by the Govern- 
ment. Back Page 

• EEC GOVERNMENTS deci- 
ded to resist any increase in 
internationally agreed interest 
rates for official export credits. 
Back Page 

• DEVELOPING COUNTRIES 
could face foreign .exchange 
cash-flow problems because of a 
growing tendency to take up 
short-term loans says an Ames 
Bank study. Back Page 

• WALL STREET JOURNAL 
plans, to publish a European 
edition next year. Page 4 

Boeing’s profits 
drop sharply 

• BOEING reported sharply 
lower earnings of $6lm ($144m) 
in the first quarter. 

• BANQCE NATIONAL*: de 
Paris raised consolidated profits 
to FFr U2bn (FFr 808m) last 
year. Page 28 

• CREDIT SUISSE First 

Boston, . where four key Euro- 
market executives have 

resigned, issued a 5100m Euro- 
bond far Basque de TIndocbine 1 
et de .Sues. Story and Feature 
7age 27 

• NCC ENERGY shares were 

suspended from' - trading 

yesterday at the group's 
request at 35p per share. 

• SIMON ENGINEERING 

reported improved taxable 

profits of £20.33m (£l9.31m) for 
1981. Page 20, Lex, Back Page 

m TRAVIS AND ARNOLD, the 
builders' merchant and timber 
importer, reported pre-tax 

profits of £5-37m (£6.58m) for 
last year. Page 20 

• BROOK STREET BUREAU 
at Mayfair reported pre-tax 
losses of £ 1.53m for last year, 
compared with profits of £l£4m. 
Page 23 

48 CLIVE DISCOUNT Holdings' 
disclosed profits for the year 
to March 32 were £l.O0m 
(£ 1.03m). Page 20, Lex, Back 
Page 


THE GOVEILVMENT is to In- 
tensify pressure on Argentina 
in an attempt to end the Falk- 
lands crisis quickly, following 
yesterday’s surrender by the 
Argentine commander of the 
Falkland* dependancy of South 
Georgia. 

Further military action is not 
being ruled out though and 
there is distinct gloom in 
London about the chances of 
success in the immediate future 
of further diplomatic efforts. 

Mrs Margaret Thatcher told 
the Commons yesterday that 
** the urgent need is to speed up 
the negotiations as the British 
task force nears the Falklands.” 

She repeatedly ' said that 
“time was getting extremely 
short” The “windy and stormy 
weather in the area is a limit- 
ing factor in possible military 
action which any sensible 
government must take into 
accGipjt" 

At the same time, the lan- 
guage used by Whitehall 
officials to describe the gap 
between the Argentine and 
British positions hardened 
noticeably yesterday. Instead 
of “serious differences,” the 
two were described as being 
u miles apart” 

The Prime Minister, who was 
warmly received by Tory back- 
benchers, argued that “negotia- 
tions are inore likely to succeed 
if military pressure is kept up.” 
The invasion of South Georgia 
is seen, with not much opti- 
mism, as reinforcing the pres- 
sures for negotiation. 

Mrs Thatcher denied that 
Britain was in a state of war 
with ihe Argentine when she 
said that the prisoners taken in 


South • Georgia were “ not 
prisoners of war." 

Mrs Thatcher told the Com- 
mons that if Britain was .not 
successful in achieving a peace- 
ful solution the fault would lie 
** fair and square ” with the 
Argentines. She stressed 
Britain’s determination to 
pursue negotiations via Mr 
Alexander Haig; the U.S. Sec- 
retary of State, but there were 
“still considerable difficulties.” 

There have apparently been 
no direct communications with 
Washington except by telegram 
and the Whitehall view is that 
everything depends on whether 


Argentina is willing to resume directly in any peaceful solution, 
talks. Mr Michael Foot, the Labour 

The next step is seen in leader, urged the Government to 
Whitehall as a U.S. decision on g 0 back to the Security Council, 
economic sanctions, though as Similarly, Dr David Owen for the 
long as Mr Haig’s mission is still Social Democrats said that, while 


in play the UK does- not expect 
him to come off the fence. 

Mrs Thatcher said she under- 
stood the feelings of MPs that 
the U.S. should announce 
sanctions which she pointed out, 
“ would be of a kind and degree 
grearer. perhaps, than any other 
which could be brou^tt to bear.” 

The Prime Minister faced 


the Haig mission had a “few 
more days," the Government 
should be ready to go to the 
United Nations to discuss 
possible trusteeship provisions 
for an interim administration. 

Mrs Thatcher again refused lo 
be drawn on the question of UN 
involvement- She said it had 
not been involved and she 


pressure from several MPs to ■ understood the feeling at its 
involve the United 'Nations headquarters in New York was 


U.S. will ‘do anything’ for peaceful end 


THE U.S. Administration yes- 
terday renewed its commit- 
ment to seek a peaceful solu- 
tion to tbe Falklands crisis 
and said that the British 
S o 0 1 h Georgia operation 
underlined the gravity of the 
situation and the urgent need 
to move forward on the diplo- 
matic front writes Reginald 
Dale, U.S. Editor in Washing- 
ton. The White House said 
that it was prepared to “do 
anything** to achieve that 
goaL 

President Ronald Reagan 
said that the situation was 
“ increasingly difficult and 
time is surely running out.” 
He told the U.S. Chamber of 
Commerce that his Adminis- 
tration remained “determined 
to do at! we can to help 
Britain and Argentina resolve 
.their differences without 
further conflict.” 


The fate of tbc peace mis- 
sion Jed by Mr Alexander 
Haig, the U.S. Secretary of 
State, nevertheless remained 
in the balance. 

Sr Nicanor Costa Mendez, 
the Argentine Foreign 
Minister, in Washington for 
yesterday's special Ministerial 
consultations among members 
of the Organisation of 
American States, postponed a 
meeting with Mr Haig on Sun- 
day night after the British 
move against Sooth Georgia, 
although the two men spoke 
at length on the telephone. 

Argentine officials said yes- 
terday that negotiations 
remained “temporarily sus- 
pended” because of the 
British action, and there were 
no plans for Mr Haig to 
return to Buenos Aires for 
further talks. However. Mr 
Haig and Sr Costa Mendez 


met briefly just before the 
OAS* meeting yesterday. 

Sr Rau! Quijauo, .Argentine 
Ambasador to tbe OAS, said 
Argentina - needed “a period 
to cool off” before resuming 
negotiations. 

As the Ministerial meeting 
opened, Sr Quijano said that 
his country was basically 
seeking “ solidarity ” from 
the other treaty members, 
which Include the U-fk, 
rather than the military aid 
and economic sanctions that 
the lreatj- provides for 
against a country that attacks 
an American State. 

Sir Nicholas Henderson, the 
British Ambassador in Wash- 
ington, said he expected a 
show of support tor Argen- 
tina . but little more. “There 
will be an act of hemispheric 
solidarity- There always is in 
these cases,” he said. 


that it should not got involved 
while the Haig mission 
continued. 

Asked by a leading Tory MP 
about a possible reference. to the 
International Court of justice in 
accordance with the UN charter. 
Mrs Thatcher said the matter of 
the dependency of the Falklands 
had been referred in 1955 but 
the Argentines had not agreed 
to the court’s jurisdiction. Tbc 
possibility of the UK's taking 
the sovereignty issue to the 
court has, however, not been 
ruled out in Whitehall. 

The broad all-party support 
for the Government's approach 
was maintained yesterday. 
partly because there were no 
British casualties during the 
South Georgia invasion. But 
there were signs of some strains 
in this unity on the Labour 
benches. 

The Labour Shadow Cahincl 
decided yesterday nwrninq to 
continue its support since it fell 
the invasion was within the 
UK's rights and was separate 
from military action against the 
Falklands. Mr Michael Foot 
stressed that Labour would 
expect the Government lo 
undertake a further round nf 
negotiations to seek a peaceful 
settlement if the Haig mission 
failed. 

Mr Foot called for a special 
Commons debate on Thursday, 
which may well occur. 

The inner group of ministers 
concerned with the crisis (Mrs 
Thatcher, Mr Francis Pym, the 
Continued on Back Page 
Falkland's crisis. Pages 2 & 3 
Thatcher wares that time for 
peace is running out. Page 10 

Editorial Comment , Page IS 


Ford’s imports exceed 
exports for first time 


1 

Lahnstein is Schmidt’s 
new Finance Minister 


BY JONATHAN CARR M BONN 


BY K9MBTH GOODING, MOTOR INDUSTRY CORRESPONDENT 

FORD of . Britain's visible -- . JL - l -- " 1 - 

imports cost £l64m more than ford OF BRITAIN 

its exports last year.- This is waff . '-1981 

the first time the company’s. - -■ - - — — 

imports into Britain -were worth Saab £X073bn £2.9241 

more than its exports from this Pre-tax profit ' £220m £226m 

country. • Balance of trade £56m — £164 

Tbe company’s 1981 annual 

report, published yesterday, also Vehicle* 

showed: pre-tax profits fell last Produced in UK 522,484 470,001 
year by 2.7 per cent to £220m Sold in UK 713,000 676,001 
from 1980’s £22 6m while sales — — ■ ■ > ■ - — 

rose by 5 per-cent from £2. 924 bn 

to £3.073bn. achieve fully their productio 

At the year-end Ford of targets " and said this ha 
Britain had loaned its UjS. forced the company to import 
parent group -£656m. high volume of cars in 1981. 

Mr Sam Toy, chairman and Of the 459,365 new Ford cai 
managing director, suffered a registered in Britain in 198 
substantial cut in pay compared 203.291 or 46 per cent wei 
with his predecessor. Sir Terence assembled overseas. This con 
Beckett, now director-general of pared with 216,760 or 48 p< 
the Confederation of British cent of the 464.706 Fords so] 
Industry. the previous year. 

Referring to the fact that Ford of Britain has once b 
Ford's balance of trade had fore recorded a small visih 
gone into the red last year, Mr balance of trade deficit. £20m i 
Toy blamed “the inability of 1979 wben the company w: 
the UK assembly plants to suffering the after-effects of tfc 


achieve fully their production 
targets " and said this had 
forced the company to import a 
high volume of cars in 1981. 

Of the 459,365 new Ford cars 
registered in Britain in 1981. 
203.291 or 46 per cent were 
assembled overseas. This com- 
pared with 216,760 or 48 per 
cent of the 464.706 Fords sold 
the previous year. 

Ford of Britain has once be- 
fore recorded a small visible 
balance of trade deficit, £20m in 
1979 wben tbe company was 
suffering the after-effects of the 


worst strike in its history at 
ihe end of the previous year. 
-However', ibis was almost cer- 
tainly copied by an ^invisible” 
trade surplus. Last year Ford 
estimates its invisible surplus 
was £124m- In 1980 the visible 
surplus was £56m and the in- 
visible one £143 m. 

Commenting on the financial 
results, Mr Toy said that by any 
business standards they were 
unsatisfactory. 

He went on: “We are simply 
not getting adequate returns 
from our manufacturing and 
trading operations. We all know 
that the high value of the 
pound is not helping in world 
markets. But the core of our 
problem is still low productivity. 

“Until we address that issue 
successfully we cannot hope to 
reverse the pattern of rising 
imports, and falling export 
volumes.” 

Continued on Back Page 
Financial details. Page 25 
Lex, Back Page 


HERR MANFRED LAHN- 
STEIN, a state secretary who 
is Herr Helmut Schmidt’s 
right-hand man at the Chan- 
cellery, is to be West Ger- 
many’s new Finance Minister. 
Herr Lahnstein Is aaeijT ‘+t. 

• He will succeed Heir "Hans 
Matthoefer, 58; who has heart 
trouble and is moving to the 
Post Ministry, an office 'less 
subject to conflict and tension. 

The Finance Ministry move 
is the major change in a 
Cabinet reshuffle which also in- 
volves the Labour and Family 
Affairs Ministries and is likely 
to be made public officially to- 
day. 

Herr Matthoefer told the 
Chancellor last Wednesday (hat 
his health would not allow him 
to continue with the finance job 
which he has held since 1978. 
However, as a gesture of loyalty 
to Herr Schmidt he was ready 
to serve in another Cabinet 
capacity. 

Despite his relative youth, 
Herr Lahnstein seems well 


Dockers rush for redundancy 


suited to his new job. He was 
formerly State Secretary at the 
Finance Ministry, with responsi- 
bility for national and inter- 
national monetary affairs. 

He held that post until late 
1980, when be became head of 
' Herr Schmidt’s Chancellery— a 
job which includes coordina- 
tion of the country’s intelligence 
services. 

In other Cabinet changes 
Frau An tie Huber, who stepped 
down as Family Affairs Minister 
a fortnight ago. is expected to 
be succeeded by Frau Anke 
Fuchs, at present State Secre- 
tary at the Labour Ministry. 

Herr Herbert Ehrenberg. a 
luckless Labour Minister at a 
time of growing unemployment 
and increased financial 
pressures, is to stand down. 

As expected, only members 
of Herr Schmidt’s Social Demo- 
crat Party (SPD) — the senior 
partner in the Bonn Coalition 
Government — are involved in 
the reshuffle. 

Profile, Page 2 


FOR JUST 


BY BUSAN GROOM, LABOUR STAFF 


PORT EMPLOYERS are being 
flooded with volunteers take pay- 
ment of up to £22,500 offered for 
six weeks to secure more than 
2,000 redundancies among 
Britain’s 18,000 registered 
dockers. 

The scheme has been running 
for only eight fifcys, but 
Liverpool has more than 900 
applicants Jkw* the required 715 
redundancies, . while London 
has almost reached tbe 723 it 
is seeking. If applicants 
continue to come forward in 
large numbers the scheme will 
be heavHy oversubscribed. 

The six-week offer is aimed 
principally at reducing labour 
surpluses at these two ports, 
which have been ordered by the 
Government to end their losses 
by the end of the year. 

Some other ports have yet to 
decide how many dockets they 
want to go. The pattern is 
underlined at Tees, however, 
where 90 to. 100 have applied, 
against a target of 57 . redun- 


- dancies authorised by the 
National Dock Labour Board. 

Employers appeared p/eased 
by the response, rather than 
worried that they had set pay- 
ments too hdgh. The Port of 
London Authority said drt would 
enable the local labour hoard 
to consider skills and age ratios 
in choosing who should go. 
Some applicant? are expected 
to withdraw before the' redun- 
dancies are completed. 

The scheme provides maxi- 
mum. payments of £22,500 for 
registered dockers with 15 
years service who are aged 61 
or under, with scaled payments 
for dockers with shorter service 
and for those between 61 and 
63. 

By yesterday there had been 
-630 applications In . London 
from the workforce of 4,577, 
with more to be counted. Liver- 
pool had received 902 applica- 
tions — more than a quarter of 
the port’s 3,420 dockers. 

The cost of redundancies at 

— CONTENTS — 


these two ports will be met by 
government aid. The Mersey 
Docks and Harbour Company 
has extended the offer to all 
employees, in an attempt to cut 
1,500 from its docker and white- 
collar workforce of more than 
5.000. Applications have been 
high among non-dockers. 

An anomaly has arisen at 
Hull, which wants 108 
redundancies. Dockers' leaders 
are pressing for applications to 
be accepted, but employers are 
resisting because labour 
shortages have developed since 
a new two-shtft system began to 
generate extra trade. 


£ in New York 


Spot *1.7716-7745 Sl.7755-7770 
l monttv □ .20- 0.25 pm o^s-Ojzb pm 
3 months 0.45-0.60 pm 0.69 0.72 pm 
12 monthflti.B5-l.95 pm 1.90-2.00 pm 


Portrait 
of a 
polite 
invasion 


By Bridget Bloom, Defence 

Correspondent 

BRITAIN'S RECAPTURE of 
South Georgia, nt least as por- 
trayed to the Press yesterday, 
sounded rather 3 gentlemanly 
affair, suggesting Ihe polite days 
or jhr Raj rather than this age 
of Itiph-tcchnolufty warfare. 

The options facing the 
Government now that it has 
retaken the lonely South 
Alla nt ic island arc more 
fraught. 

The Defence Ministry in 
London >•; not saying what it 
will do with South Georgia now. 
Much v-iH depend on the 
Governments military strategy. 

The Island could provide safe 
anchorage if not berths for 
several ship?*, temporary land- 
ing for helicopters and probably 
nlJu for the task force’s Sea 
Harrier**. 

1 1 will .il c n serve as a useful 
if imeoMiTartahtc base for troops 
who might otherwise lose their 
landless in licavy South 
Atlantic seas. It is also out of 
ranne of most of Argentina’s 
larse airforce. 

The key military* question 
now is whether the task force 
will he asked to follow up its 
success in Souih Georgia with 
what could be the infinitely 
mare difficult invasion of the 
Falklands themselves, now 
heavily reinforced. 

Mrs Thatcher, the Prime 
Minister, made much in the 
Commons yesterday of how 
short the time was getting as 
the task force approached the 
Falklands. Its military options 
in the heavy winter storms 
were few. she said. 

Mrs Thatcher probably will 
have been fold by Service chiefs 
that there are iwo main options: 
O to stand off tbe Falklands. 
tightening the blockade around 
them (n the hope of persuading 
Argentina towards a settlement 
acceptable to Britain; or- 
® an invasion. 

Ttest, . hoy/ever, could be an 
altogether less gentlemanly 
affair. 

The battle to recapture South 
Georgia was over in under two 
hours. No one was killed. One 
man, an Argentine, was 
wounded. Argentine prisoners 
(156 military, 38 civilians) 
were said to have been treated 
with humanity. After it was all 
over the two Argentine com- 
manders dined aboard a Royal 
Navy warship. 

Li-Col Tim Donkin, on the 
staff of the Major-General of 
Royal Marines, was doing the 
briefing in London yesterday. 
He spoke in the Defence 
Ministry's great South HalL 
transformed into a Press room 
only last weekend. 

Continued on Back Page 



Birmingham local elections: a big hurdle 

for the Alliance- IS 

Mexico’s inflationary spiral: the ‘oil 

mirade ’ turned sour 19 

Around Britain: Trafford Park council 

looks to the cosatryside ; 7 

Technology: control power for process 

engineers 13 - 

Video: dedication of industrial film 
makers 11 


Commercial law: leave to appeal from 

judge on arbitration point 12 

Management: small business in Northern 

Ireland 14 

Editorial comment: Falklands; industrial 

training 18 

Lombard: Richard Lambert on American 

company perks 19 

Nottingham City Hospital: why it cannot 

afford new beds 24 

Survey: Regional Development ... inset 


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EUROPEAN NEWS 


Financial Times Tuesday April 27 I9S2 


THE FAEKLANDS 




Dutch prepare to fight on steel quotas 


SY CHARLES BATCHELOR IN AMSTERDAM 

S£ ( . 3 ^5 T 5E5 LA ? DS t ta ex " Estel is being disbanded which then manufactures the Dutch Government in its production quota since tort was | 
pected to take a tough stand under pressure from the Bonn finished products. Hoogovens is claim for a n adequate quota, composed . of a number of ' 

in next month s EEC steel nego- Government which warns 10 seeking to obtain this entire Hr Jan Terlouw. the Economics different products and refer- ! 

nations to ensure that form a national steel industry finished products quota in talks Minister, told Dutch MPs last ence periods. In 19S0, the Iasi j 

Hoogovens. the country’s main from a combination of Hoesch with its former "West German week that unless changes are full vear for which information i 

steel-maker, is given adequate and Krupp. Este! i= still a Partner. made to the quota system. the is available, it made S.l4m : 

production quotas. legal entity, but Hoesch and The EEC Council of Ministers company would allocate an tonnes of pig iron and 8.54m 1 


Oslo issues 
more oil 
licences 
in north 


Britain confideut 


in 


• v - SV- Jt.7 


production quotas. legal entity, but Hoesch and The EEC Council of Ministers company would allocate 

Hoogovens fears that the Hoogovens have operated inde- is due to meet on May 4 to unacceptable quantity, 

pending breakup of Estel, the pendently since February. discuss an extension of the Talks are also eontinui 

Dutch-West German steel com- At present, the ■ European quota arrangement bevond between the two sides on t 

Wne in which it and Hoesch are Commission allocates a produc- July L Viscount Etienne other main problem— the aUw 
the operating companies, will lion quota to Estel which then Davignon, the Industry Com- lion between the two compani 
mean n is given an unsatisfac- distributes it between its two missiouer, has expressed of Estel's 1980-81 losses of mo 
tory quota for finished products, operating companies. IIoo- sympathy for Hoogovens' diffi- than FI lbn (£210m). 

It believes it must expand its govens. in the past, has supplied culties. according to the Estel said it was impossil 

output of such products if the 300.000400.000 tonnes of semi- company. to give the overall figure for 


IS available, it made S.14m By Fay G jester in Oslo 
tonnes of pi; iron and 8.54m ’ 

tonnes of rolled steel products. ! BRITISH PETROLEUM 


Talks are also ‘continuing # Tae EEC v Deduction. ! J ® on \ 12 “1 companies by oavib MARSH 

*t_ . - « s__ __ >i x J f chnroc in CIV Itfnnma Ofmc 


an FI lbn (£2 10m). Fabruary, AP reports from ] ministry'. 

Estel said it was impossible Luxembourg. The March total ; The awards, confirmed 


in London are mainly stable and tbou^ht to : hi* only imited ’ 
at the are not likely ‘to be run down danger of withdrawals 
erator significantly as to result of un- Treasure believes that soriaoi ' 


company is to remain viable. finished steel a year to Hoesch Hoogovens has the backing of the company's present EEC 


was 1.1 per cent below that of i weekend, make BP the operator significantly as the result of un- Treasury believes that soma of 
the same month of last vear. ■ on Halten Bank block 6507-10, case over the Falklands crisis. Hows into Britain -hav^beec 

1 ilia tiitiA Vamiiw h<i« nh'on lrli>nti Finrl oversea?; hfildiflli _«■ _ . ... -i._ .. - - 



W. German chemical output falls | My sets 

BY KEVIN DONE >N FRANKFURT j {JQ 

>nnr:mnv nv /.kumiMi. _r * s i * ! ■* v 


British pension 


PRODUCTION OF chemicals in chemicals — one of the most tuxal chemicals, but here, too. 
West Germany fell in the first important West German growth rates are slowing, 
quarter by 3 per cent as com- industrial sectors with sales Around 48 per cent of West 
panies felt the impact of the last year of DM 116Abn German chemicals production 
continuing domestic recession. t£27.5bn)— has continued from was sold abroad last year and 
Exports provided tbe only she recession of 1980/81. the industry has 'invested ' 
source of growth, but the rate According to Professor Herbert around DM 14bn (£3.3bn) in ! 
of expansion is weakening in Grunewald, chairman of Bayer the past 30 years — more than \ 
demand from foreign markets, and president of the VCL there any other sector — in building 
The West German industry is are still no signs of the upturn up foreign production interests. ! 
the world's biggest exporter of in the domestic economy hoped The industry is concerned 
chemicals. for in the second hall about growing protectionism 

The sectors most affected by not only in developing coun- 


into blaze 
deaths 


parallel. investment instruments total British pension tariffs^ 7 ind 

The six blocks comprise three close 10 £lSbn— about £7bn more insurance companies, -. -! V- 
on the Halten Bank off central than Britain's official reserves of Bank of Encland figures jtiu*w 
Norway, and three on the gold and foreign expanse- overseas sterling h&Sasic&s 

Tromso Patch to the west of the Overall inflows during ' the m 3-* KSS* 

North Cape. Two or three o three years since the E euera official SE? 


around P ri . rate and official- holdings. 


By James Buxton in Rome 


chemicals. for in the second hall about growing protectionism 

According to estimates from The sectors most affected by not only in developing coun- 
toe West German chemicals falling demand in the first tries but also in classical export 


A judicial Inquiry has begun 
Into the tragic fire which 
killed 34 people at an 
antiques fair in the central 


industry association (VCIj, the quarter were inorganic and markets. In addition, it is run- j Italian town or Tedi on 
sector's turnover rose by only organic basic chemicals, ning into increasing competi- 1 S t|T|daV 
4 per cent in nominal terms, plastics, paints and fertilisers, tion from U.S. and Japanese [ oanaaj - 


of 10-20 ‘per cent have been foreign banking and securities 

given to the foreign partners, markets following the abolition but 

except BP which has a 30 per ^change controls in October jWgJg ^^JSlSSfe; J 

^Statoil, the state oil company. Since much of the foreign- ' 

has a 50 per cent stake on each held sterling is in relatively tJSESSi!? 

licence with the right to in- short-term investments, which rouch better than Indleah»4js 

creasfth^S 80 peJfentSider could be withdrawn, fairly tJSPwt 

a sliding scale, according to quickly at a time «rf waning con- 

eventual producUon levels. fidence, the massive build-up o£ offiaal res^rves. __ 


The lfinistcy~'reserves Die overseas funds represents • a Theresen^s have '*&***£ 
-rhr m ■■ nart nf potential “ overhang which the past year mainly because 


right to transfer “ part of I potential “ overhang 


Herr Lahnsteln ... no seat 
in Parliament 


while producer prices jumped Consumer products, such as chemicals exports in third 

by more than S per cent. Foreign detergents and cosmetics are markets. Through concentrating 

chemicals sales increased by also suffering from falling gen- on certain narrow market seg- 

some 7 per cent in value in the eral retail sales. meats the Japanese industry has 


first quarter compared with the Demand is still rising for the started to win “interesting 
corresponding period' last year, research - intensive products, market • shares,” says Prof 
Weak demand this year for pharmaceuticals and agricul- Gruenewald. 


Lahnstein: 
a talent 
for words 
and music 


Bosporus move ‘administrative* 


BY MET1N MUNIR IN ANKARA 


MEASURES INTRODUCED last vessels, and lays down that situation. 


The disaster has already 
provoked criticism of the 
organisers of the event, the 
state of the Italian fire ser- 
vice and fire protection legis- 
lation. 

The fire broke out on the 
second floor of an ancient 
palazzo in the heart of the 
city. Smoke and flames pre- 
vented many people from 
escaping down the only stair- 
case. 

Fire engines took 45 
minutes to arrive from 


State's rights " to “ others " at could depress the pound’s & ^ 


a later date. 


Polish unions 
movement 
heads for split 


exchange rate. 

Treasury officials say. how- 


farther repayments rof . Jhe 
Government’s foreign debfcv^a ;■ 


ever, that the bulk .of the terms of the . net position*-- 
inflow's has been from private taking into account overseas 


sector depositors rather than borrowings— the reserves have 


from central banks and govern- 
ment institutions, whose sterl- 


lrnproved substantially stece 
the May 1979 election. . r •? . 


By Christopher Bobinski 
in Warsaw 


By Jonathan Carr in Bonn 


week by Turkey to regulate pilotage and tow 
transit and navigation in the Bosporus . 


rsacia, auu uimu via«. oiiumu,- . Perugia and Tern! at least 25 

pilotage and towage remain The regulations are being , away, and many of the 


examined by the naval authori- 
ties of the nations concerned. 


TWO QUALITIES above all will 
stand Herr . Manfred Lahn- 
stein in good stead os he 
takes over the post of West 
German Finance Minister. 

Even in the blackest situations, 
he is able to convince others 
that there is a way through 
the difficulties. 

And eve nat the most hectic 
moments, he seems to have 


strategic Bosporus Straits do j, etween the Asian and Euro- including those of the U.S. A 

not constitute a unilateral p eail shores of Istanbul, is 36 U.S. official commented: “We 

amendment of .the Montreux nautical miles long’ and are not worried now because we 

Convention, a Turkish official constitutes the only link don’t understand what has 


said yesterday. They are merely between the Black Sea and the changed. But this does not 


an “ administrative and tech- Mediterranean, 
nical re-organisation” designed Aegean. Sea. 
to cope with increased traffic. The Turkish official 


through 


mean that we will not be 
extremely worried when we do.” 
II Turkey's foreign trade deficit 


The Turkish Government has Turkey has merely retained the declined by nearly 54 per cent 
I J r right to shut the straits when m the first two mouths of tills 


survivors escaped by jump- 
ing from the top floor of the 
building onto the roof of a 
large van in the street. 

The cause of the fire is 
thought to have been an 
explosion of something highly 
inflammable, such as a gas 
cylinder, iu a room In the 
Palazzo, though magistrates 


A ROW has broken- out among 1 
the leadership of Kazz, Poland’s 
confederation of politically 
independent small trade unions, 
which threatens a split in the 
movement and has implications 
for the power struggle in the 
establishment, 

Kazz, which was . suspended 
under martial law, enjoyed the 
support of some lm members ' 
who belonged neither to Soli- 1 
darity nor the loyalist “branch” , 
trade unions. 

The row came after Ka« 
activists, led by Mr Wleslaw 
Grzymski from the Foreign 



ad eve nat the most hectic issued new regulations which ri-.ni to snui me straits wnen n hnnm which 

moments, he seems to have slate Thai “transit through the fog. storms and collisions might 

tune over to sit tack, take strata of Istanbul ciu be cause damage to life and started tet jear eouunued^ 


tare ordered police and fire- Unioor mef 


Stay “ ne« fa? aw^ MSt % S3KS ™ X fiota (t-SomC about *0 percent I able nature of the madum. 
He^wlll neecf’bo.h’Seae'a'ttri- reaa„„-io the past aod was I *« ■ 

butes to the full. He is taking pilotage and towage compulsory 3 { ^s - Turkey !S^dwSST^o^S 

jLSSt.™- 11 r ° UleS and SSU” France, Britain per cent to SXJTSbn. 7 The trade 
(aoart ^fiim that ofCharh h ° Greece Japan, Romania, the deficit dropped to :4419m from 

reMor Helmut SthmidM fmm —These appe_ared to contravene. Soviet Union and Yugoslavia. - . -S908m_. . 7 

r H/nVM a tthoSer the 1936 Montreux Convention Tlie clause on compulsory Turkish exports grew by a 

Af W 'fprtpral which guarantees “complete pilotage did not affect free remarkable 62 per cent last year 

un freedom of transit and naviga- transit, he said, and was a re- to reach S4.7bn. The target set 

within weeks, putting fSrthe? tion in the straits" for merchant statement of the existing for this year is $6bn. 

strain on the coalition Govern- 

Ecevit’s colleagues inyestigated 

Abroad, he will be facing 

serious financial and mone- by OUR ANKARA CORRESPONDENT 
tary problems within the 

European Community and. TURKEY’S CHIEF military pro- seems to he a mere legal Mr Hasan Esat Isik (Defence), 
further afield, all the diffi- se cutor vesterdav started ques- formality. Mr Deniz Baykal (Energy) and 


Exports amounted to S85Bm 


also make 


acknowledged by the Convcn- according to preliminary figures. 


_ J Anmnulrnn- dOkllUHViniXCU uy UltT V.UIIVI-U- .V 

-rrarneff r ISS lions signatories — Turkey. Imports declined by some 21 
Transit routes and Bulgalia France. Britain, per cent to 3l.275bn. The trade 

“ Greece. Japan, Romania, the deficit dropped to 


deficit dropped to :B419m from 
8908m-. - . . * . 

Turkish exports grew by a 


men to look for any evidence 
of foul play. The fire spread 
fast because of the combos- 


Ecevit’s colleagues investigated 


BY OUR ANKARA CORRESPONDENT 


culties associated with high tinning former members of 
U.S. interest rates and a nariiament hplon«in2 to the 


rmality. Mr Deniz Baykal (Energy) and 

His first arrest which followed Mr Irfan Ozaydinli (Interior). 

1 interview in a Norwegian The investigation was 


U.S. interest rates and a parliament belonging to the an interview in a Norwegian The investigation was 

Washington Administration b ann ed Republican People’s newspaper, was linked yester- prompted by a report prepared 

disinclined to curb dollar p ar ty (RPP), in connection with day to a statement broadcast by by lawyers acting on behalf 

fiuctation. allegations that they were in- Dutch ’ television. Mr Ecevit's of the extreme right-wing 


right-wing 


Further, his personal position vo j ve( j j n political violence and lawyers deny he gave an on-the- Nationalist Action Party, whose 

as Finance Minister is not secess i 0 nist activities. record interview to the Nor- leaders are on trial for their 

going unchallenged. Herr 5^ thev were being ques- wegian newspaper and claim lives. The lawyers alleged that 
Lahnstein lias been a member ^0 ^, mV BuJent Ecevit, the that the Dutch broadcast was the RPP was actively involved 

of the SPD for many years f ormer prime Minister and based on a private letter. in the political terror and 


and has close contacts with j^pp C h a jrman, was arrested by 
the trade unions. martial law rourr for the 


The military prosecutor is in- secessionist activities 


the trade umons. a martial law court for the tending to question some 260 nearly caused civil war in 

Those contacts helped him be j n two weeks. He former RPP members of Par- Turkey in the two years before 

of service — albeit very much has been in jail since April 10 liament. Yesterday he saw the military takeover in Septem- 


behind the scenes —‘in the ^ ti e second arrest warrant three former cabinet ministers: ber 1980. 
crucial national metalworking 


The main reason for the Thi 
deaths and the scores of leade 
injuries, man}' of them Flutk 
serious, is thought to be the that 
fact that Todi has no fire reacti 
brigade, despite being a town ciple 
of about 20,000 people. It is move 
well known to tourists as one Mr 
of the most beautiful in Kazz. 
Umbria. accus 

A leader of the firemen's wi * 17 
union has already called a 1 umon 
two-dav strike over the v 0 ^ 
disaster. The onion says that hand, 
if fire prevention regulations . L * as 
contained in a Presidential stu P 
decree that has yet to be 
passed had been in force, the biwak 
tragedy would have been zn® 011 
avoided. no _ co 

Sup 

It also says that the long- Barcti 
promised decentralisation of poiitfa 
fire stations has not been Miecr 
Implemented. Prein j 

Sig Giuseppe Zamberletti, coneei 
Minister for ChrU Protection, veerix 
who handled the relief opera- Des 
tions after the November 1980 is po< 
earthquake in southern Italy, group! 
said on Sunday that the by th( 
Italian fire brigades were activit 
short of staff and equipment, of offi 


l3St week with Mr Albin Siwak. 
a hardline Communist Party 
politburo member and an advo- 
cate of a return to the tradi- 
tional model of branch unions. 

The meeting came after the 
leader of Kazz, Mr Bogdan 
Fiutkowski, demanded publicly 
that Kazz qnd Solidarity be 
reactivated, and that the prin- 
ciple of pluralism in the union 
movement be preserved. 

Mr Siwak’s supporters in 
Kazz, however, have been 
accused of favouring a merger 
with the old branch trade 
unions, a development which 
would strengthen Mr Siwak’s 



Argentine troops line up to receive communion at . m£7 ; ' 

.open-air service in tire Falklands. . 7- v . 


JOHN WYLES comments on how the crisis 
could change the EEC's outlook 


wage negotiations at the 
start of this year. However, 


Last week, the Kazz leader- ’ • . 

ship overwhelmingly voted %. 

Siwak meeting be followed t Community may owe 

another, and expressed a vote of » . 

no confidence in Mr Grzymski. — . » ‘ 

debt to Argentina 

Politburo member and Mr ^ V , - 

Mieczyilaw Rakowski, Deputy ___ . . . ^ J j;- ' 'X' . 

Premier, have already showed D0ES THE unprecedentedly slble reminder that there is s 
concern that Kazz might he P rom P* agreement by Britain’s great deal more, than that fo 
veering towards the Siwak wing. f EC Partners to ban imports EEC membership, and other. 

Despite its small size, Kazz from Argentine impose any EEC governments will be cX- . 
is potentially importanL The so £ t of moral obligation on the pecting Mrs ’Xbatcher and her ' 
group in e has not been attacked UK? Does it, in particular, Ministers to hammer this point .* 
by the authorities for anti-state me ^ n ? at , Mrs Thatcher should home to the British people • : • 
activities yet it is independent r ®? ly Once the Falklmds. crisis has 

of officiai controL ‘ nthe way ? reduction passed, there is a dear opport- 

SKS entSt0theC0m ‘ SfortheGov^SK • 

UUliy DU US Cl- thp rnmmnMlhF's hai4inB‘«'iliii' 


the Community’s backing 1 as the' 


SsE&ris? David Buchan, in Kosovo, reports on the growth of demands for the province’s autonomy I SsSSS 3 ^? 


he is a civil servant without 

a Parliamentary seat. W T 1 1 • 17 1 • • !• "■ j • 

"S “TFS Weak link in Yugoslavia s chain under strain 

week when it emerged that 

someone who was not one KOSOVO is the weakest link in this hides something more from 20:8 per cent 10 yearn ago. 


rue diplomatic breeze here is British public opinion poll 
causing some imease in British majorities which believe that 


circles. The UK is not used to EEC membership is bad; for - 
being beholden to its partners Britainl • 


of their number might be pe^eral chain that holds sinister? 


appointed to the Finance multinational Yugoslavia 


Serbs and Montenegrins of 


Yugoslavia’s constitution gives Serbian origin are also leavin' 


Ministry job. gether Money and police have republics, but not provinces, the in increasing numbers. Their 

Bom in the Rhineland, he began beeQ ‘ ured imo ^ province theoretical right to secede. The exodus speeded up after the 

his career in umon work in lQ prevent it snapping away, but theory goes that ethnic groups riots in March 1981. despite 

the country’s most populous protests bj . ?orae of t h e pro- which have their majority inside greater police protection. Their 


vince’s lm ethnic Albanians for " the- borders 


Yugoslavia tales of barrassment raise the. 


.BELEBADE 


Westphalia, which includes greater formal autonomy — qualify for a republic in the risk of a Serbian backlash. 


the Ruhr industrial area. He ^- h £ C j, ^ t0 fightin® in the federation, but the two groups For the moment the 

moved to the European trade 0 f prjgtina last year — : — ethnic Albanians and ''Federalist" forces have carried 

union secretariat in Brussels hav ^ co „tinued sporadically this .Hungarians — which have a the day. The number of police 

in 1965 and two years later _ nHn „ mhevp face Yueoslavia- 41 homeland ” elsewhere only get and militia in Kosovo is a secret 


YUGOSLAVIA 


spring. These face Yugoslavia 


he went to the European Com- ^th its most serious political provincial status without any but they include units from all 


-Kosovska 

Mitrovica 


republics 


blunt Tirana’s 


mission. challenge since the death of right of secession. republics to blunt Tirana s 

He was hauled hack to Bonn ^ years ago Thus, those groups unlikely accusation that it is just the 

in 1973 by Herr Willy Brandt, ' . to secede are given the right Serbs up to their usual practice 

then government leader, to The protesters nave on p aper t0 do so and those of repressing Albanians. Out of 
Viniri tha *<*nnnmip nnlicv clamoured for elevation tor midhl enneeivahtv be the 280 neoide who have been 


LC1 0. 1 1 g and M r Francis Pym does not ^ and this is the wfint to 

u “ Vjtat to enter hi, first bndset he bkenoo W imS 

negotiating session of EEC caoiials ' th»vwwfii ' 

into developing Kosovo’s large foreign ministers in Luxem- this c^nnSn^ to UK 

energy and mining potential, bourg today ranying some, kind is fScedSttS tolght atetto • 
whose products were kept low of moral handicap. Pnr i hln/w? 

in price by the Federal govern- Mr Pym’s call for the special paymentota tteMNOTibb ‘ 

ment Third, what labour-inten- Brussels meeting on Tuesday of or if it is V 

sive industries were developed last week was partly to avoid by accep ting a bude^ burden 

turned out goods poor in this. .His effusive thanks for 

quality’ and design. The result is EEC support over ffce-'Filtlands • .' « aGrre . m _^T ._ 

that growth in population has crisis and. the briefing he gave; 

outstripped that in the economy, his Community colleagues was ,1^ il, - 

and unemployment of more than meant to keep this issue quite 525 TT fizfzJsS' '£**£?** 

30 per cent has created dry separate from the • budget SSSS* S 1 of Community. 

tinder for any nationalist There is no earthly reason one SSeh? 

sparks- why the>* should be connected.- SLJJHS K ha l ™n dry taR 

At bottom, it bas been a ArsuabJy ttie Coranmnity-s the unS^d^Sto^S^^ ' 

failure nf response to the Argentine inva- OF , .“hport MIL . 


head the economic policy 
section of the Chancellor. 


clamoured tor eievauon iur mjght conceivably be the 280 people who have been 

Kosovojrom a province loosed terTTpled t0 join other states, arrested and sentenced. 70 of 


From there, he moved to the attached to Serbia to full _re- 3re gjygp n0 sucb right It is a them are students from the 

Finance Ministry, rising , to g ub , 1 ! c status.^ on a par -<• Catch 22.” but probably neces- University of Pristina, the core 7 Vm^' 

hecome State Secretary for nfb^rPmihh^^Their na^ ^ ^ Til0 ’ s Yugoslavia which of the disturbances.. 

national and international r?® has given. the Balkans nearly 40 The university s rector, Mr hac 

monetary affairs in 1977. has been taken up bj Albania, vears 0 f unusual stability is not Munir Bushi, says that there J* I? 25 further. 

w ?he last general election wth lts Powerful Radio Tirana £ oorae 3p3rL Yu^lavia’s were a couple of brief demon- ^ ** the ““e 


sparks. why they should be connected.- whnjIvSi k 1 *Z. 5® AV! L '.*5 

At bottom, it bas been a Axgaabty the Conummi^s ' 

failure of human management. to the Argentine inva- More ’ 

so. the new strategy as to get ■ sovereign territory i mpl i c Xt!s for to Cnm^iS : 

the more efficient companies covered by the Treaty of Rome but the speed of the ^eeraon T ■ 

from Yugoslavia's richer areas was both appropriate and an J rSdines^tn ^ 

to lend a direct hand. Since the ™wssary. • ’ away 

Federal government cannot ^EquaHy necessary. \he object JesS?o n^vSat ' • 

force companies to invest in Brmsh will argue, is the need h» 


Kosovo— investment is purely a to remove the injustice which 
regional responsibility - it is would aUow the EECs fourth of^ nStiV' 7 $S 
•* bribing ” them to do so. ***** member-state from GermS oSl ' 

ttiif n t in : i ..-j r*. becomine the lareest nr semnd 


national and international 
monetary affairs in 1977. 

After the last general election 
in October. 1980, Herr 
Schmidt made him head of 
Chancellery. 

There can be no doubt about 


“ bribing " them to do so. 


Half of all regional aid for becoming the largest or second no t had the same Feelina £ot a 

’nentrn ic »/>•„ liable on very largest net contributor to the long time. Here ^ 


joint ven- Community budget. 


was . a . .case 


cnauvirusni ox once again but would undoubtedly seek to expelled from to campus and Like a lame runner on an tur^s between “companies “in I There is a sense, however, ^ h _ e rej e MT w9 : 
trj'ing to dery Kosovan Afya- a ny change in Kosovo’s from the Jocal Communist athletic track. Kosovo keeps Kosovo and Elsewhere ** The in which the two issues are national 

mans their lust rights. Tirana s ^ Party, but things are now eettine “ laDDed" bv its faster ... rel a i«t the h„i- *»«»nal profit to be- gamed, i» ’ 


Lahnsl'eln ’s financial nians their Tirana’s 


but things are 


totoraation^romacts hrias m ineir susp.cuh to join hands with the Hoxha claimed recently to nave uon. This is despite the money which have" shown" wiliinc Thatcher her Minister. 

built up over the vears, above th at the ‘republican demands rgg^g i S a mystery to those uprooted A! barton-backed that has been spent on its Slovene Companies, for instance! One of the reasons why most against - a^uisiHon^Bv^fi^S 

A.” tt c In uuZ are the thin end of a wedge Kosovan Albanians, such as Mr " irredentist and “counter- problems over the years. Since haw. mmninMuiN «?UKiHon iey- fofcCt 


support has confirmed .mut "‘Quite wiry anyone might want settling down. "The police growing brethren in to Federa- of^ Enterprises 511 outside Kosovo Pow^^oM^Smi^Mb cow^ento ' 

Jugoslavs in their suspicion j 0 i n hands wirh the Hoxha dauned recently to have tion. This is despite the monev whinti hi,,.. ThMchor ann Vior arini^aM* governments could i>ec lhat-.ta* , 


have tion. This is despite the money which have ' 


all in toe US which he likes are tiie thin et 5 of a » e . d ! e Kosovan Albanians, such as Mr *’ irredentist " and “couoter- 
and visits often He has other that would split Kosovo off into Aglin zatriqi. toe province’s revolutionary” organisations, 
and visits of toe wailine grasp of President i P)ui/ ;cmn riirpotor. whn know The for harder task, however. 


lalpnt e too I The wailin K grasp of Pre. lcieviJj 

When Te decides to take time En * er Hox f of . A .. - f wyihi 
off, Herr Lahnstein shows he Kosovo largely runs itsejf water 
can be quite a musician. The already. It har shgbtiy fewer „y * 

222? rtfe SSS 


Kosovo largely runs 


television director, who know The for harder task, however, regional aid fund. In its first six months. 

t - LL A J .Mi) ID 4 a ramnud ItVwS AnAHAmiA VMt- -Run ll/mv ■ *■ ij) V O _ 


fa ym. anise have signed some 50 joini member-slates detest haring to was of ' 

1966, Yugoslavia has had a venture agreements in the past negotiate solutions to the Communl^wixMm^^S^^iS 


anything about toe bread and is to remove the economic root five years it paid Kosovo 2.7 bn 
itself water conditions in Tirana. “In of Kosovo's discontent Kosovo dinars (£33m), or 30 per cent 


venture agreements in the past negotiate solutions to the Community respond 
slx months. British budeet problem is that. h. 

To the relief of Belgrade, the apart from hitting their to avoid if. " - ™“v 

World Bank in Washington has Pockets, the issue offends their In producing thic resnohse 


Yugoslaria. Its average income dinars (£!J2bn). or 42 per cent countrj’’s 


- decisions and control over its .While, this. is. .still true, it is is one-sixth of that of the of total- regional aid. 


a nivielAnd law' -uwiwvu* cvourui uvn .muie. Uiis.u. aun umc, h w « 

.-j fnrmpr ataiwari local econoD1 . v as well as its own nonetheless the case that Kosovo richest 
re-tsr: S to*. .The «iKunwnt car, > is rapidlv bocommg ,mo« ethnta D«t. 


aattne « many enusn pontniw store about to SK a»l®B 
income and officials It is all ContinehUl needed to nablve V Bri&i' - 

of i.Vtrt Cant nut thorn (c i ... - . . • 


. _ ^ _ - — 82,800 — is just about at the cant, but there is a sincere be- . erisiq hh** 

s °y° S iu Veni !“ Mr Vasiljevic. toe World Bank’s upper limit on lief in many Community capi- S - 

mie- U.S:$4.800 (£2^0). The gaps regional funds assistant direc- eligibility for borrowing. But ti»i« that the British take toe oi British " miKS* rZJ ? •• • 

>pe.s in waltom th^OTe country tor. says the effort failed on because this average conceals narrowest possible view of EEC hav<* spent houre'wztttoim^ff^ 

cent are as big or bigger than m three counts. First, the Kosovo poverty equal to some of the membership and that the advan- n liiristas wSJfSw- !- 

are the. whole European Com- provincial government diverted poorest of the bank’s clients, taecs and disadvantais nra all mlm.iii.? . ‘ - 


“ f gn> “ P down to those »ho ally Ali/nian Wi.h Europe 

m uuessemon. ! if Kosovo, has. these powers highest birthrate, at 2.6 per cer 


financial TIMES, pushed daHy already, why Should it not go a year, Kosovan Albanians are the. whole European Com- provincial government diverted poorest of the bank’s clients, tages and disadvantages are all Se 

except C Sundays hoi.says. u.s. one step further, versus those breeding faster toan toe Serbs inunity. too much of toe investment the World Bank has recently summed up bv the vexed ques- zaohetarv 

subscription rates S36S00 per annum, who question If it has these there; to toe extent that the Kosovo did start life to toe funds into expanding social agreed to keep on lending, al tion of net budget cavnienta '-imAimt/t* ; 

Se CO r,d powers, why should it bother latter are now 14.9 per cent of Yugoslav Federation way services for its growing popula- least until the end of Yugo- The ban on tinportsfrom toe S 

‘ about republican status-unless the province's population, down behind other regions, but toe tion. Second, much money went sUvia’s 1981-85 plan, Argentine totte mm 


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Financial Times Tuesday April 27 1982 


THE F AIRLANDS CRISIS 


Argentine morale undented 
by South Georgia reverse 


BY ANDREW WHITLEY, IN MO DE JANEIRO 


RADIO RIVADAVIA, one of 
the most popular spots osn the 
Argentina waveband, played 
martial music from early morn- 
ing yesterday, interspersed 
with, the latest news on the 
■'war 5 * with Britain, but public 
morjde has been surprisingly 
unaffected by. the news of Sun- 
day’s setback on South Georgia. 
For all the concern displayed 
in tiie capital yesterday, the 
recaptured islands could be a 
million miles away. 

Before the event, a number 
of Argentinians -said they would 
be prepared to let the un- 
inhabited. South Georgia archi- 
pelago go. to satisfy British 
national honour and to save 
Mrs Thatcher’s face. Any battle 
for the Falklands themselves 
would meet with a very dif- 
ferent reaction. 

Conviction, a newspaper dose 
to the navy, naturally takes the 
matter to heart. Its front page 
is given over to a transcript of 
the last exchange of messages 
with the islands’ beleaguered 
defenders before communica- 
tions were cut. 

On the other hand the estab- 
lishment daily. La Prensa, does 
not even refer to the military 
engagement in its opinion 
columns, writing instead about 
the serious matter of unemploy- 
ment. 

There has been no attempt to 


stir up war fever through the 
Press. Most of yesterday’s 
Buenos Aires newspapers report 
the event m a straightforward, 
matter-of-fact way. In the 
absence of much independent 
hard news the stream of com- 
muniques issued by the military 
junta are repeated in full. 

In the business area it was a 
normal Monday, the pavements 
thick with secretaries and 
bosses hurrying to work. A few 
banks and finance houses were 
filled with anxious customers, 
but most cash counters were 
quiet. 

Outside the presidential 
palace a small good-natured 
crowd of some 200 people 
cheered as President Galtieri 
arrived for work, accompanied 
by a ceremonial horse guard of 
honour. There were no banners 
denouncing Mrs Thatcher or 
even any anti-British chants. 

The British community is 
lying low, reassured by the 
Government's pledge to protect 
Britons and their property but 
alarmed by a bloodcurdling 
threat telephoned to the English 
language newspaper, the Buenos 
Aires Herald, to kill three 
British- citizens for every 
soldier setting foot on Argen- 
tine soil. 

The prospect of internment if 
war is declared and full-scale 
hostilities break out is on many 


people’s minds, but few are 
running for cover in neighbour- 
ing Uruguay. For the moment, 
the omst pressing concern in 
the 17,000-strong community is 
their blocked bank, accounts in 
Britain. 

In the opinion of the British 
interests section o£ the Swiss 
embassy most shortstay Britons 
have left over the past three 
weeks. Most of the UK pass- 
port holders remaining have 
ties so deep to Argentina that 
leaving now is almost inconceiv- 
able. 

Despite a prediction by Sr 
Roberto Alemann. the Economy 
Minister, on Sunday night that 
there would probably be an- 
other run on the banks, there 
was tittle sign of panic yester- 
day. 

All was calm at the British- 
owned Bank of London and 
South America. But a queue of 
anxious customers stretched 
along the pavement outside the 
state-owned banks of Chubut 
province. Chubut’s capital, 
Comoitoro Rivadavia is in the 
front line of any possible British 
attack on the mainland. Big 
crowds also filled the branches 
of a number of finance bouses, 
the traditional repositories of 
"hot" speculative money. 

Sr Alemann has again denied 
speculation that emergency 
controls on bank deposits may 
be imposed. 



Japanese Bonn tops list 

of Argentina’s 


Buenos Aires demonstrators denounce Britain's “ dirty 
pirates.” 


Tierra del Fuego— Galtieri’s exposed outpost 


BY HUGH O’SMAUGHNESSY, RECENTLY IN U5HIMIA 


f...'rf. 7;-' 

-- ‘j 

K-..V . 

i<. ■ . -y.X k-Z : .£ 


TIERRA DEL FUEGO is at tie 
end of the line. The vast island 
at the bottom of South America, 
shared between Chile and 
Argentina, (is the exposed out- 
post of the Argentine armed 
forces as they struggle to retain 
their hold on the offshore 
islands they conquered earlier 
this month. 

Ushuaia, the capital of Tierra 
del Fuego, is a town of 15,000 
inhabitants squeezed between 
the Beagle Channel and the last 
snow-covered outcrops of the 
Andes. 

It is a military and bureau- 
cratic town whose officials, in 
theory at least, administer not 
just Argentine Tierra del Fuego 
but the country’s vast claim to 
territory in Antarctica and the 
islands of the South. Atlantic, 
including the FaJkiands. 

Tierra defl Fuego’s airfieM 
and port facilities are -Vital. for 
the struggle in_ the>- South 


ARGENTINA’S claims over 
the - Britain’s southern 
Atlantic possessions fall Into 
three distinct categories—* 
recent, ancient and frozen. 
David Tange, our Diplomatic 
correspondent, writes. 

Argentina’s most recent 
claims are to the island which 
has proved the catalyst in the 
present ' conflict — South 
Georgia— and its even more 
remote southern neighbours 


Atlantic and war has come 
quickly to the island. - 
Ushuaia’s first blackout exer- 
-dse-came last Thursday-^a half- 
hour practice at 10 o’clock 
wliicb left the town fumbling 
uncomfortably. The town's small 
naval - base, a former! penal 
colony, .was the scene of unusual 
activity- last week as the ageing 
cruiser -General Belgrano put in 


in the South Sandwich group. 

Yet in the early years of 
this century. Argentina 
accepted British sovereignty 
over South Georgia. Only in 
1927 did the Argentines form- 
ally claim it and the Sonth 
Sandwich islands. 

Britain’s daims to all these 
islands date back to 1775 
when they were discovered 
by Captain Cook. Britain 
never settled them, but in 


for 36 hours before setting out 
again with a destroyer escort 
into the South Atlantic. 

More menacingly for the 
Royal Navy, the naval air base 
at Rio Grande has received a 
dozen Mirage fighters which 
regularly lake off to eastwards, 
loaded with bombs and missiles. 

But if Tierra del Fuego 1 is a 
menace to the British task 


1908 annexed them when the 
Crown issued letters patent 
Since 1909 it has had an 
administrative presence on 
them. 

The Falkland Islands are 
different in that they were 
.once occupied by France and 
Spain, and sovereignty over 
them has been contested ever 
since the 1760s. Britain 
expelled the Argentine gover- 
nor from them in 1833 


force, the Argentines are not 
without their own problems m 
the island. The usual supply 
route for Tierra del Fuego 
passes through Chilean territory 
and there are fears that the 
Chileans will shut the frontier 
if war starts in earnest. 

This could bring difficulties 
for military and civilians alike. 
' hi the duty -free shops which 


line Ushuaia’s main street, there 
is nervous gloom about the 
future if the war spreads and 
the town becomes a target. 

Behind the flags and posters 
prominently displayed in cele- 
bration of the capture of the 
Falkland Islands, there are 
many signs of nervousness. 

The inhabitants, long accus- 
tomed to tense relations with 
neighbouring Chile, ' are. be- 
wildered at the prospect of a 
real war 

Looking out onto the Ant- 
arctic and separated by hun- 
dreds of miles of virtually un- 
inhabited desert from the more 
densely populated parts of 
Argentina, the inhabitants of 
Tierra del Fuego are praying 
for the war to go away. 

■ fRiey will then be able to 
return to a normal life, of 
catering for tourists and making 
a fair living selling duty-free 
goods on' their exotic holidays. 


urge 
end to 
hostilities 


JAPAN YESTERDAY called for 
an “ immediate cessation of hos- 
tilities” i nthe Sonth Atlantic, 
though without explicitly con- 
demning Britain’s use for force 
to recover South Georgia. 
Charles Smith reports from 
Tokyo. 

Tokyo still believed In the 
possibility of a diplomatic solu- 
tion to the Falklands crisis, the 
statement added, implying that 
Japan would use its position as 
a member of the UN Security 
Council to make negotiations 
succeed. 

THE FRENCH Government 
yesterday responded to Britain's 
recapture of South Georgia by 
insisting On the “necessity and 
urgency " of negotiations, David 
Housego writes from Paris. 

If the brief statement from 
the Ministry of External Rela- 
tions refrained from passing 
judgment on Britain’s military 
intervention in the Falklands, 
the omission was deliberate. 

But there is little doubt that 
the French Government, which 
has so far backed Britain, is 
privately apprehensive at . the 
use of force. 

New Zealand’s Prime Min- 
ister, Mr Robert Muldoon. has 
sent a cable of congratulations 
and support to Mrs Margaret 
Thatcher expressing his Cabi- 
net’s “gratification” that Britain 
had moved decisively to regain 
possession of South Georgia, 
Dai Hayward reports from Wel- 
lington. 

ITALY HAS -reacted to the 
British landing on South 
Georgia with an urgent appeal 
to both sides to avoid widening 
the conflict and to continue to 
seek a negotiated settlement, 
Rupert Cornwell reports from 
Rome. 

The statement by $ig Emilio 
Colombo, the Foreign Minister, 
issued shortly after Britain 
announced -the landing on Sun- 
sign so far of the Italian 
Government’s unease at being 
caught between Britain, a good 
friend in Europe, and Argen- 
tina, the South American coun- 
try with which it has the 
strongest ties. 

THE SPANISH Government 
hash een quick to repeat its 
earlier statement calling for a 
negotiated settlement to the 
Falklands • crisis. Robert 
Graham reports from Madrid. 


arms suppliers 

BY BRIDGET BLOOM, DEFENCE CORRESPONDENT 


BRITAIN HAS sold Argentina 
the most sophisticated warships 
now in its navy but West 
Germany has -been Argenina's 
largest arms supplier over the 
past five years. 

Statistics produced by Sipri, 
the Stockholm International 
Peace Research Institute, show 
that West - Germany supplied 
one-third of Argentina's major 
weapons systems — mainly sub- 
marines. destroyers and 
armoured vehicles between 1977 
and 1981. 

The U.S. had 17 per cent 
of the market, one k&‘ contract 
being 40 AQ Sky hawk fighters 
which constitute the main 
carrier-based challenge to 
Britain’s jump-jet Sea Harriers, 
now with the task force. 

France is Argentina's third 
largest arms supplier, with a 
contract for 14 Super Etendard 
naval fighter bombers oniy 
partly fulfilled. Apparently only 
about eight of tbe 14 have so 
far been delivered. 

Britain is the fifth largest 
arms supplier, behind Israel 
which, with 14 per cent of the 
market, has sold as many as 
42 of the Israeli-built Mirage 5 
fighters known as Dagger. 

Argentina has bought two 
Type 42 destroyers from 
Britain — the Hercules and the 


Satttissima Trinidad— -as well as 
44 Sea Dart missiles and six 
Lynx anti-submarine helicopters. 

Britain has been a substantial 
supplier of military electronics, 
radar and other sorts of soft- 
ware. Plcssey Ferranti, for 
example, lias helped to 
modernise the communications 
system aboard Argentia’s sole 
aircraft carrier, the Veinticinco 
Mare. Bought 15 years ago from 
the Netherlands, tbe vessel was 
British-built, beginning life in 
the 1940s as HMS Venerable. 

A number of European 
countries have supplied small 
arms to Argentina. 

However Argentina, like 
Brazil and even Canada and 
Australia belongs to a key 
group of countries rapidly 
becoming less important as 
direct export markets since they 
ore inovins into local production 
of arms. Small arras and war- 
ships, particularly, are being 
built under licence. 

Fabricacaciones Militates 
signed an agreement in IBS l lo 
produce the Swiss Ocrlikon 
35mm anti-aircraft gun. The 
second or the British Type 42 
destroyers has been built in 
Argentina, as will be the last 
three or the four Type 1700 
German submarines. 


Venezuela suspends talks 
on buying Hawk trainers 


BY KIM FUAD IN CARACAS 

VENEZUELA is reported to 
have suspended negotiations for 
the purchase of 25 British -built 
Hawk aircraft at a cost of £140m 
as a gesture of support for 
Argentina. 

President Luis Herrera 
Camp ins has already stressed 
his country's support for 
Buenos Aires following the 
British reoccupation of South 
Georgia, and port workers have 
announced a boycott of British 
ships. 

The suspension of talks on 
the Hawk deal was announced 
by Senator Gecofrego von 
Gonzalez, president of the 
National Congress and chair- 
man of the ruling party. 

The controversy over the 
Hawks win place the Vene- 
zuelan Air Force, which favours 


their purchase, in the uncom- 
fortable position of going 
against Congress, which pro- 
vides the money for buying 
arms. 

It is understood that negoti- 
ations were well advanced. The 
Venezuelan Defence Minister, 
General Bernardo Puche Leal, 
is reported to have signed a 
formal agreement to acquire the 
aircraft 

The air force commander. 
Gen Maxim iliano Hernandez 
Vasquez. has insisted that the 
Hawks should be purchased 
despite the Falklands dispute, 
saying they are needed as train- 
ing aircraft. 

He explained that Venezuela 
had only four outdated two- 
seater aircraft for training 
pilots 





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OVERSEAS NEWS 


Elnancial Times Tuesday April 27 1SS2 


AMERICAN NEWS 





KOREA’S GROWTH 

Decline in 


exports 



target 


By Ann Charters in Seoul 


% 

i i 


AN EXPORT shortfall i n the 
first Quarter 1 and continuing 
domestic recession has forced 
Korea to lower its projected 
: GNP growth - this year from 
" per cent to 6.1 per cent 
Exports, which would have to 
increase IS per cent per ann ^ 

. to reach the Government’s 
target of US$24.7bn (£14bn) 

’ this year, grew only at an 
annualised* 5.7 per cent in 
March, more than the same 
period a year ago: In the first 
‘ quarter of this year exports 
were 84.82bn, * while imports 
, were 55J32bn. 

- Korean exports are not 
■ expected to improve soon, as 
letter of credit arrivals, which 
predict exports two to three 
.months in advance, declined by 
.6.7 per rent in the first quarter 
, and were down 10 per cent in 
mid -April. 

. The decline in letter of credit 
-.arrivals since September of last 
year -has reduced unofficial pro- 
jections for exports this year to 
closer to $24bn than $25bn— 
and these are based on an 
optimistic outlook for the 
second half of the year. 

* Changes in economic expecta- 
tions have generated a debate 
within the Korean Government 
over which policies to pursue. 
One group'af economic advisers 
would have the Government 
wait out the world recession as 
the general slow down in trade 
appears to be affecting Korea's 
Tnaln competitors in Asia as 
well. In the first quarter of this 
year, both Hong Kong and 
Singapore's exports declined 
slightly while Japan and 
Taiwan’s exports showed 
increases of - 1.5 '.per cent and 
'6.5 per cent, respectively, 
according to Mr Nam Sang Woo, 
'n Senior official of the Korea 
development Institute (KDI), 
Aorea’s economic think tank. 

Others are urging the Govern- 
ment to devalue the won in an 
attempt to boost experts. The 
;v:'ce -chairman of the Korea 
Tnd?rs Association, Mr Kay 
Bong-Kysuk, indicated that 
Korean companies trading with 
Japan anti Europe push harder 
for such ?. devaluation than 
:fnose exporting to the United 
States' market Although there 
seems to be general agreement 
that the won is overvalued 
against the dollar, its major 
trading currency, there is dis- 
agreement over whether it is as 
high as 10 per cent, as a recent 
■.International Monetary Fund 
report put it, or more In the 
■range .of 7 to 8- per cent. 

There is also little assurance 
that an accelerated devaluation 
now would increase trade sub- 
stantially. The won-doUar rate 
is already devaluing at the 
current rate of 10 per cent a 
year, according to. traders and 
has kept pace with the rate of 
devaluation in the currencies of 
most of Korea's Asian com- 
petitors, according to the KDI. 

Inflation, which has dropped 
markedly to 10 per rent Jn the 
first nuarter as measured by 
wholesale prices and 2 per cent 
fr»v consumer prices, remains a 
high priority as the Govern- 
ment is dotermined to maintain 
inflation at a single figure for 
ilis whole year from 12 per cent 
for wholesale prices in 1981 
and 4 per cent In 1980. Although 
government officials and 
businessmen alike wouM like to 
see the economy come out of 
its recession, there is little 
likelihood that stimulative 
measure? will be taken, that 
would fuel inflation again. 

Public spending on construc- 
tion projects has been bunched 
in the early part of the year 
and the rising. number of hous- 
ing permits and construction 
orders constitute a bright spot 
in the economy. Domestic 
demand cannot, however, be 
expected to pick up the slack 
resulting from poor export 
sales since real wages have not 
kept pace with Inflation. 

Instead the Government is 
urging (businesses to sharpen up 
their export marketing and 
improve /productivity and 
quality. Simplified bureaucratic 
procedures are . promised to 
make it easier for firms to 
export 


Japan’s steel exports 


to U.S. fall by 15% 


BY IAN RODGER 


JAPANESE steel exports to the 
U.S. have fallen sharply .since 
import ‘restrictions were adopted 
by Washington In January. In 
March, exports fell 15J3 per cent 
to 530.000 tonnes. 

Overall steel exports for the 
month -were up 8.3 per cent to 
2.82m tonnes. 

Preliminary figures for the' 
year to March 1982 from the. 
Japan Iron and Steel Federa- 
tion showed that exports to the 
U.S. were ' well ahead until 
January. For the year as a 
whole, exports to the US. were 
up 22.8 per rent to 6.09m tonnes. 

" Japan’s' total steel exports 
last year were down 0.2 per 
cent by volume to 29J5m tonnes 
but up 8-6 per cent by value to 
$17bn (£9.6bn). 

The preliminary report gave 
no reasons for the drop in ship- 
ments, but in addition to the 
sudden drop in US. sales, 
Japanese producers have, been 
facing increasing competition 
from South Korea and Taiwan 
in world markets. 


Japanese vehicle production 
fell 0.6 per cent to 11.11m in 
fiscal 1981, ended last month, 
from ILXSm the previous 
year, the Japanese Auto- 
mobile Manufacturers’ Asso- 
ciation said yesterday, Reuter 
reports from Tokyo, 

This was the first fall for 
seven years. The association 
attributed It to a decline In 
exports and slow domestic 
sales of large trucks. 

Exports In fiscal 1981, to be 
announced today, are 
estimated at 5£6m, down 
about 5 per cent from the 
preceding year, the associa- 
tion added. 


The US. normally accounts 
for 17 per cent of industry 
exports, but in the latest 
quarter shipments by the six 
leading Integrated producers 
were down a third to 0.8m 
tonnes. 


Meanwhile Nippon Steel, the 
world's largest integrated steel- 
maker, has notified its major 
Japanese customers that it 
plans to raise prices cm average 
5-3 per cent starting with June 
and July shipments. 

The company’s first price 
increases in two years were 
attributed to the higher costs of 
iron ore, coking coal and wages. 

Steel plate prices will rise 
5.3 per cent to Y89.500 (S376) 
per tonne, hot coils go up 5.1 
per cent to .Y83.000, cold ceHs 
op 5.5 per cent to Y99.50Q and 
wide flange shapes up 5 per 
cent to YS5.000. 

Other major Japanese steel 
producers are expected to 
follow Nippon’s increases. 

Sensitive to the industry’s 
difficulties, Japan’s steel unions 
have accepted management’s 
first offer of a 636 per cent 
pay rise this year, compared to 
6.99 per cent last year. The 
management had warned that 
anything more substantial could 
lead to serious job erosion. 


UK urged to boost 
Asian aid funds 


BY EMtiJA TAGAZA IN MANILA 


EUROPEAN nations are on call 
to give more than their tradi- 
tional shares to - the Asian 
Development Fund, the soft- 
loan facility of the Asian 
Development Bank, now that the 
U.S. has decided not to increase 
its contributions. 

Britain and West Germany, in 
particular, are being pushed to 
fill the gap of some $50m 
(£28m) in the $32bn Develop- 
ment Fund replenishment, 
planned for the next four years. 

An ADB official said that at 
the bank donors’ meeting yes- 
terday that commitments to the 
ADF had almost hit the new 
target of $3-2bn, because of 
supplementary contributions 
mainly from Japan, West Ger- 
many. France, Italy and 
Australia. 

The figure had almost been 
reached because Japan -had 
offered to match the total addi- 
tional pledges made by other 
willing donors, he added. Japan 


had volunteered to help Britain 
and West Germany raise the 
$50m shortfall. 

Replenishment of the ADF. 
the source of interest-free 
money for the ADB’s poorest 
members, has been a central 
worry for the bank for the past 
seveal months, after it became 
clear tlmt the U.S. will refuse to 
increase its contribution. The 
bank's 1979-1982 development 
fund is now exhausted. 

The original target for the 
1983-86 ADF replenishment was 
$4.1bn. But after four meetings 
of the donor-countries, this was 
cut to $3.2bn. Mr Masao Fuji oka, 
ADB president, called this the 
“ mi nimum figure whieh will 

help the bank maintain its soft 
lending at current levels in real 
terras, after providing for 
inflation." 

According to .ADB officials, 
the U.S. contribution will be no 
more than 22 per cent of the 
total. 


Zimbabwe achieves real 
growth rate of 7.5% 


BY OUR SALISBURY CORRESPONDENT 


ZIMBABWE achieved a zeal 
growth rate of 7.5 per cent in 
1981 after 11.75 per cent in 
1980. Dr Bernard Chidzero, 
Minister of Finance and 
Economic Planning, announced 
yesterday. - 

Opening the 1981 Zimbabwe 
International Trade Fair in 
Bulawayo, Dr Chidzero said 
the country’s 1980 perform- 
ance had been “exceptional 
and the slower growth last 
year was in line wdth planned 
growth rates set but in. the 
three-year transitional develop- 
ment plan due to be published 
in July." 

Dr Chidzero said the plan en- 
visaged total investment in the 
Zimbabwe 'economy over 
1982-S5 of Z$4.6bn l£3.5bn) of 
which 55 per cent would bein 
the public sector and 45 per. 
cent in the private sector. Just 
over 60 per cent of proposed 
investment would be financed 
domestically and the balance 
externally. 

About Z$480m (£3B0m) of 
the Z$l^m funds raised at 


last year’s donor meeting had 
been committed to projects, the 
minister added. This rate of 
commatment was higher than 
expected a year ago, but he 
stressed that other financial 
flows would be necessary. 

The Minister warned that the 
pattern of trade deficits and 
balance of payments outflows 
oh current account established 
in the first two years of inde- 
pendence could be expected to 
continue again, highlighting 
the need for foreign borrowing 
and investment from abroad. 

There was unlikely to be any 
“significant increase” dn basic 
foreign currency allocations— 
which were cut in the final 
quarter of last year and again 
in the first three months of 
1982— until the external pay- 
merits situation improved. 

The Minister forecast a 
change in the country’s system 
of foreign currency allocation 
which was [imposed at the time 
of the Unilateral Declaration of 
Independence in 1965, saying 
that a new and different frame- 
work was now necessary. 


Zhao plans reshuffle 


PEKING — China’s Prime 
Minister, Mr Zhao Ziyang, said 
yesterday that a big reshuffle 
would be announced soon to 
complete the first stage of his 
plans to streamline the nation’s 
bureaucracy of 20m. 

The New China News Agency 
said Mr Zhao had submitted 
plans for the -reshuffle to the 
standing committee of the 
National People’s Congress 
(China’s Parliament). 

The 'Prime Minister, was 
quoted as saying that the 52 
former ministries and ' com- 


missions under the State 
Council (Cabinet) woold be 
reduced to 41 and some Vice- 
Premiers would be removed. . 

The Government has already 
- said that -the nturiber of deputy 
Premiers will be cut from 13 
to two in Mr Zhao’s efficiency 
drive. 

It appears that Peking is not 
-wilMng to announce the names 
of those affected until the plans 
have been approved by the 
meeting of the standing com- 
mittee. This is expected to end 
within a week or so. 


Indian jet 
offers better 


hot climate 


performance 


By Alain Cass and K. K. Surma 
in Bangalore 


India has developed a new 
engine for jet fighters which, 
it is claimed, improves their 
performance In hot climates. 


The new engine, the GTS, 
Is a high performance gas 
turbine model aimed mainly 
at the present generation of 
fighter aircraft such as the' 
Russian ' designed MiG-21 
which is expected to remain 
In sen- ice for at least another 
decade. 


So far only one prototype 
has been made and tested 
successfully under conditions 
of extreme secrecy at the Gas 
Turbine Research Establish- 
ment of India’s Ministry of 
Defence. 


The Government is under- 
stood to have approved deve- 
lopment and manufacture of 
the engine whieh is expected 
to be in fall production 
within six months. 


The initial research and 
development budget was in 
the order of £lm. But once 
its full potential for India’s 
air force and for possible ex- 
port became apparent, the 
Government authorised what 
Is thought to be India's 
largest single amount ever for 
any defence item. 


The GTE development 
forms part of a massive in- 
crease in defence expenditure 
which has taken place In 
India In recent years.. 


The defence budget for 
1 282-83 is about £3 bn. That is- 
17 per cent of total govern- 
ment expenditure fer - the 
year. Much of this is ear- 
marked for new aircraft, such 
as the Mirage 2000, and for 
India’s indigenous .aero- 
nautical industry. 


Research officials . at the 
Bangalore headquarters- . of 
Hindustan Aeronautics — 
manufacturers of aircraft for 
the India air force — say 
the GTX incorporates unique 
technology able to compen- 
sate for loss of power in hot 
climates. 


The power loss at an atmos- 
pheric temperature of 30°C 
in conventionally ' built 
engines can be as high as 20 
per cent It Is claimed that 
this has been reduced to 4 
per cent in the GTX. 


. The GTX will be. usedin 
tbe present generation of air- 
craft and is likely to be 
developed for the advanced 
Mjg-23 and even more 
advanced MJgr27's. Talks on 
the manufacture of the later 
Stigs are now being held with -, 
the Soviet Union. 


Plans for 


European 
Wall Street 


Journal 


By Our New York Staff 


THE WALL STREET Journal, 
the U.S. business dsBy news-, 
paper, plans to launch, a new 
international edition in Europe 
early next yea x. ... 

The newspaper already pub- 
lishes a separate edition in the 
Far East 

Mr Warren Phillips, chairman 
of Dow Jones and Company, 
which publishes tbe newspaper 
and owns tbe Dow Jones news 
services, said the -new edition 
was expected to be edited and 
published in Brussels, printed 

in Heerien in the Netherlands, 

and distributed in Europe and 
parts of the Middle East 

" Our intention is to improve 
service to our existing Journal 
readers in Europe and to appeal 
to new readers;” he said. 

The newspaper was not seek- 
ing a large general readership 
in Europe, but hoped to appeal 
to a select business and political 
readership. ' 

The newspaper’s Asian' edi- 
tion was launched in 1976. Its 
initial circulation was less than 
10,000 copies a day, bnt by tbe 
end of last year this had 
increased to 254300 copies a day. 

The edition, however, is 
understood to be operating in 
deficit, although Dow Jones 
declined yesterday to disclose 
the sfize of the loss because 
“ the company does not break 
out its figures individually.” 

In its annual report, the com- 
pany said advertising lineage 
rose 12.9 per cent last year 
against 1980. The Asian edition 
also began printing in Singapore 
from full pages transmitted by 
satellite from Hong Kong. 

In Europe about 7,000 copies 
a day are sold of an air mail 
edition based on the journal's 
format for the eastern U.S. 
-Delivery of this edition is one 
or more days late. 

Dow Jones said the news 
coverage of its European 
edition would be aimed specifi- 
cally at the needs of its regional 
audiences. The edition would be 
delivered to European business 
centres on the morning of 
publication and would include 
full U.S. market coverage. 

Mr Norman Pearl stine, 
national news editor of the Wall 
Street Journal and former 
managing editor of the Asian 
edition, has been appointed 
editor and publisher of the 
European edition. 

The Wall Street Journal, 
which sells more than 2m 
copies a day, is the largest 
circul.vtion newspaper in the 
U.S. Its domestic and foreign 
news staff totals 400, while its 
Asian edition has a staff of 33 
reporters and editors. 

Tbe jou rn al would not dis- 
close the capital It was com- 
mitted to its European venture. 
But Dow Jones had a good year 
last year with earnings 21.2 per 
cent higher to $71.4m (£40 .3m) 
compared with the previous 
year. Revenues rose 20.8 per 
cent to 5641m. The Wall Street 
Jnumal contributes about 70 
per cent of total earnings. 



.a* resumes 




BY PAUL BETTS IN NEW YORK 


THE US G w at Amen t has 
resumed purchases of Iranian 
crude oil, suggesting A thaw in 
relations between tixe . . two 
countries. 

The move could have import- . 
ant repercnsBkms for the inter- 
national oil market - 

The U.S. . Defence Fuel 
Supply Centre, -dm agency Which - 
buys oil for . the Defeat*'. 
Department, confirmed it had 
bought iSm barrels, of light. 
Iranian crude last week from 
a trading company, based in 
Geneva. 

Tbe oil was sold at a price 
of $29.51 a barrel, well below 
the current Saudi marker price 
of 334 a . barrel. . 

The centre said the purchase 
of the oil. which will be stored 
In the strategic -petroleum 


reserve in XooWamu-Tad been 
cleared by the State Depart- 


This is the first UJSu -Gorer&* 
me** pentose- of Iranian 
crude di ■ since imports from 
that .country were -banned in 

November 1979 after the U-S. 
h os tag e s ' w*re : . seteed- 
Preddett Ronald Reagan 
signed as executive order end- 
ing the import' embargo last 
January. Tbe coder also- Jilted 

travel restrictions. 

. This first transaction, vataeC 
at just over 353m (£30m), could . 
open tbe way for a resumption 
of Iranian r fil '.imports- to the 
UjS. Indeed, U.S. oil companies 
are understood to have Obegair' 
negotiating for Iranian oil 
-following the disclosure of the: 
Government's deaL 


Iran, which -Is: in dtft «eed 
of rash because of the state of 
Its economy and the cost of its 
war against Iraq, has .been in- 
-creasing oil experts at dxsedont 
'prices. :. •• .' 

cm exports appear to bare 
risen significantly from about 
500,000 barrels a day at rite end 
of last year' to 15m b/H at 
present. Some estimates are 
as high as 2m b/d. ■-. TMr its 
still well s ho rt of the 5m b/d 
the country produced' before 
. the" revolution. 

Should Iranian oil exports 
continue to increase, this dis- 
counted; ^ «B is- likely to 1 put 
pressure on (lie Organisation 
of Petroleum Exporting Coun- 
tries, which is , fighting to hold 
its marker'- pricey at 334 a 
barrel. 


Move to break budget stalemate 


BY ANATOtE KALETSKY fN WASHINGTON 


PRESIDENT -Ronald Reagan 
yesterday offered to “lookat 
additional revenue. sources” in 
order to break- his stalemate 
with Congress over the 1983 
budget. 

However, he repeated his 
commitment to “ three essential 
priorities.” These are: higher 
defence spending, personal tax 
cuts and a . “ longterm effort ” 
to reduce government spending. 
as a share of gross national pro- . 
duct This has left a confused 
impression about the prospects 
for a budget compromise. 

So far, all efforts to nego- 
tiate a new budget plan, which 
would reduce the federal deficit 
from an estimated 9180bn 
(flOlbn) In the absence of new 
measures to a target of below 
$ 100 bn, have failed. 

After repeatedly extending a 
“final deadline" for an agree- 
ment last week. Congressional 
leaders and White House offi- 
cials again broke up in dis- 
array late on Sunday, . haring- 
made no real progress: They 
agreed to meet again today for 
another “ final ” attempt at com- 
promise. 

Mr Reagan’s speech, delivered 
yesterday to the US. chamber 
of commerce, was designed to 


-I 


A- =t -“\-V 


President Reagan? commit- 
ment to priorities r 


dispel the public impreslon 
that it is his intransigence that 
is btocldng an agreement on. the 
budget. It will only emerge in 
negotiating sessions this week 
whether Ins willingness to look 
at new revenue measures, his 
reference to a M long term” 
effort to reduce spending and 
has vagueness about tbe precise 


size o£~ tiie military build-up 
indicate genuine concessions to 
.tes critics. L" 

AH parties -to the budget 
negotiations agree that there 
sbouldbe some real increase in 
defence spending, but even the 
President's Republican sup- 
porters believe that an increase 
of 9 per cent a year in real 
terms is too rapid. 

Indeed, it is generally agreed 
in Washington that rids aspect 
of President Reagan's plans is 
bound to be revised in Congress 
whatever else happens on the 
budget. Similarly, the cuts in 
social programme* proposed in 
the President's . now defunct 
1983 budget .are widely agreed 
to be too savage, particularly 
for an election year. 

The President’s speech may 
therefore - indicate a more 
pragmatic acceptance that he 
will have to be flexible on these 
Issues. 

J The one compromise that 
seems to be completely ruled 
nut is any tampering with the 
programme of persona! tax cuts. 
But even oh this White House 
officials have indicated that 
there may be some wLUmgenes> 
to consider a temporary income 
tax surcharge 


Reagan may still back Salvador 


BY OUR WASHINGTON CORRESPONDENT 


THE NEWLY elected con, 
Btituent assembly in El 
Salvador yesterday prepared to 
elect a President to replace Sr 
Jose Napoleon Duarte, the 
“ moderate ” Christian Demo- 
crat who has been strongly 
backed over the past two years 
by tile US. 

The preparations went ahead 
amid . signs that political 
violence has Increased sharply 
since the March 28 election and 
amid growing doubts in Wash- 


ington about - the Reagan. 
Administration’s ■ policy on 
Latin America once the Falk- 
land* crisis is resolved. 

Last week the assembly chnse- 
Sr Roberto -iFAubuisson, the 
most extreme of 'the right-wing 
leaders, as its chairman. The 
right-wing parties won a. total 
of 60 per cent of the popular 
vote.. UJS. officials believe real 
power in El Salvador will now 
reside in the assembly rather 
than the President. 


Over tbe weekend. Mr Deane 
Hinton, the US* ambassador to 
El Salvador, indicated that the 
U.S. would continue to support 
El Salvador, - 
The Administration bad pre- 
viously indicated that the 
extreme .right would risk losing 
U.S. assistance unless it gave 
Christian Democrats a signifi- 
cant voice in the country’s new 
Government and kept Sr 
d’Aubuisson out of the top rank 
of leadership. ' - 


David FisMock, in Brussels, reports on 


UJS. abandons plutonium plans 


THE U.S. Administration has : 
abandoned its highly contro- 
versial ideas of using plutortium. 
from civil power stations fuel 
for its new programmes of . 
nuclear weapons. 

This was disclosed by Mr Ken - 
Davies, deputy Secretary . (if 
State at the U.S.- Department, of 
Energy, - at the European 
Nuclear Conference here 
yesterday. 

Mr Davies said the UJS. had 
no plans to use plutonium from , 
tiie electricity industry’^ nuclear; 
stations as a source of plutonium ' 
fer nuclear weapons. He added 
that- Congress was threatening 
to prohibit any such, use by- 
enacting a new law. ‘ 1 ' . 

■ The US. Department of 
Energy was, planning,- however, 
to purchase plutonium, from the ' 
privately owned . Barnwell 
nod ear fuel reprocessing plant, 
for use .In ite . Clinch River - 
demonstration’., fast ; breeder 
reactor project. Mr Dairies -wffcL 
Construction of Clinch River is 
expected to start next year, he 
added. 

Last summer, the Reagan 
-Administration disclosed that it 
was studying several 1 options for 


obtaining plutonium quickly for 
new nuclear weapon pro- 
grammes, and for the Clinch 
River project They included 
the purchase, or leasing from 
Britain of plutonium from the 
electricity industry’s stockpile, 
currently Increasing at the rate 
of about 2 tonnes a year. : 

In figures- given to Parliament 
recently, the British Govern- 
ment disclosed that the ervd 
plutonium , stockpile .. now 
amounts jo 14.5 tonnes, mostly 
in the. form of plutonium oxide 
powder. 

The Government .stffil refuses 
to reveal bow much' plutonium 
from Its military, reactors has 
already been sent to the U.S. in 
exchange tor highly enriched 
uranium required as submarine 
-fuel and nuclear' explosives. 

' ■ Such a 1 figure -ritaild " auto- 
matically . disclose | Britain’s' 
imports of .MghN enriched 
uranium, since plutonium is- 
bartered pound for bound. The 
barter is likely to Be renewed . 
unless plans to bi$Kl a new 
£100 uraatium- enrichment plant . 
for the navy are rtdnstateti. 

. . US. delegates to jthe confer- 


ence admitted that the Reagan 
Administration had erred, ah 
suggesting that civil , plutonium 
might be used in the new US. 
weapons programmes, since 
the issue had placed a major 
new weapon in the hands of 
opponents of nuclear energy. - 

In Britain, anti-nuclear cam- 
paigners have argued that even 
if Britain can guarantee it is 
delivering civil plutonium, to a 
civil US. nuclear project Such 
as Cainch River, the net result 
eould be. to release -U.S. civil 
plutonium fear use in weapons. 

Tbe US. ' has -a laser beam' 
enrichment . technology '. which 
could refine tiie plutonium to 
make Mgh quality thermo- 
nuclear warheads. But present 
US. plans call for the US., 
weapons programme to . meet 
its - own . requirements ' tor 
plutonium . by -investing in new 
production facilities. 

Plutonium 'extracted-' from ‘ 
spent nuclear, fuel from the . 
electricity companies would be 
used only for the Clinch River 
project,', which is expected to 
need up to 10 tonnes. ' 

In Europe, . delays - to pro- 


grammes for plutonium -burning 
fast-breeder reactors arc height- 
ening interest in the use of 
plutonium as an alternative fuel 
for light-water reactors. Spent 
light-water ■ reactor fuel still 
contains about 40 per cent of 
its initial' energy content 


France had no - plans to re- 
cycle plutonium, from the. re- 
actors now providing about 40 

S ;r cent of its electricity, said 
c Michel Fecqueur, .chairman 
of the Atomic Energy Commis- 
sion. France needed all the 
plutonium it could -extract to 
fuel its fast; reactor programme. 
Should the Government decide 
in 1985 not to go ahead with a 
commercial programme of fast 
reactors, however. Dr Pecqueur 
believed it would be better for 
France to use plutonium in 
light-water reactors rather than 
store it. 


Dr Hans-Hilger Haunscfalld, 
permanent secretary at the 
Ministry of Research and Tech- 
nology in Bonn, said West Ger- 
many might also find it useful 
to, re-cycle plutonium because of 
the inevitable delay in introduc- 
ing commercial fast reactors. ' 


Thailand’s political survivor leads a business 


BY JONATHAN SHARP IN BANGKOK 


THAI Prime Minister Prem 
Tinsuianonda, Who is visiting 
the UK from today until Friday 
as part of a European tour, has 
surprised both his detractors 
and neutral diplomatic analysts 
in Bangkok by his durability in 
the volatile world of his 
country’s politics. 

The soft-spoken career soldier 
was a reluctant candidate for 
the post, which, he assumed just 
over two years ago. Moreover, 
while respected for his honesty 
and incorruptibility'. General 
Prem was not perceived as 
possessing the dynamism 
required to give Thailand a 
muefcwieeded measure of 
stability and tackle its tricky 
economic and foreign policy 
problems. 

In April last year, however, 
Gen Prem survived a coup 
attempt by a group of colonels. 
He now visibly relishes a: least 


the ceremonial aspects of his 
job, but doubts remain about 
his leadership qualities. Anyone 
looking for hard-edged policies 
.from 5ie present Thai govern- 
ment will be disappointed. 

The common and somewhat 
cynical view attributes Gen 
Prem’s survival to what one 
Western diplomat here 
described as u the lack of any- 
one better. He is Prime Minister 
by default” 

Rumours of yet another coup 
recur, but such whisperings are 
par for the course, in '.Thai 
politics. More importantly, no 
pressing reason appears to exist 
for removing Gen Prem. Thai- 
land’s various problems, though' 
not solved, are for the most part 
contained. 

The economy is by no means 
booming, but the Government 
can with some justification point 
to external factors as the 


culprit, such as the trend to- 
wards a world recession. Despite 
last year’s bumper harvest, de- 
pressed world prices for most 
of the commodities that Thai- 
land produces meant that the 
economy failed to benefit as 
much as might have been ex- 
pected. 

The discovery of offshore 
natural gas, which came 
onstream last September, and 
what appear to be commercially 
viable reserves of onshore oil 
came as good news . for the 
Government Thailand counts 
on these new finds to break its 
dependence on foreign energy 
—which in the past swallowed 
as much as 40 per cent of its 
export earnings — and to 
provide a spur to industrialisa- 
tion. 

On the political front, Gen. 
Prem appears to be on good 
terms with Gen Arthit Kam- 



THE STEFS which President 
Chun Doo Hwan of South 
Korea has taken - towards 
national reconciliation are 
most encouraging. President 
Ronald Reagan said in a letter 
yesterday. Ratter reports 
from Seoul 

The letter, handed to Presi- 
dent Chun, by Mr George 
Bush. US. . Vice-President, 
comes amid growing anti- 


U.S. sentiment among South 
Korean opposition groups 
because of official UJ3. sup-' 
port for the Seoul Govern- 
ment. 

A South Korean Govern- 
ment official said ^mt Mr 
Bush, in an hour-long meet- 
ing with President Chun, had 
reaffirmed US. commitment 
to the defence .of South 
Korea. 


groups of Kampuchean guer- 
rillas forced back to the Thai- 
Kampuchean border. 


lang-Ek, the ' increasingly 
influential Assistant Array 
Coramander-in-Chief, who played 
a key role in crushing. last 
year’s coup. Gen Arthit .is 
regarded as near certain- to 
become Commander-in-Chief 
during the annual shake-up of 
military and government 
appointments, due in October, 


and he is an obvious candidate 
for the Prime .Ministership — it 
is assumed in Thailand that the 
job goes to a member of tbe 
Armed Forces. 

In foreign affairs, the main 
problem lies along the eastern 
border where Vietnamese force? 
who have occupied 'Kampuchea 
since 1979 are battling motley 


Thailand opposes the Vlet- 
.hamese nccupatidn, . but is . 
fearful of its -otoa security; 
especially when {the fighting 
periodically sptlij over, into 
Thai territory as the Vietnamese 
chase the Kampucheans^ * Thai- 
land’s hopes that* international 
pressure will ferifee the Viet- 
namese to withdraw have yet 
to bear fruit, .aid the border 
tension remains r. a potentially - 
destabilising faetpr on the Thai 
political scene..] 


A farther thdrn in the ride 
of the Thai Government is. 
represented by Communist and 
Moslem Insurgents who for 
years have challenged govern- 
ment authority in outlying 
areas. Government troops more 
than hold their jown against the. 


■rebels, but do not seem to- be 
able to st^mp them out 
! Thailand’s political tradition 
Iras been one of pragmatism, 
coping with, problems as. they 
arise and avoiding being locked 
into positions that might be 
rendered invalid by tiie turn of 
events. 

Gen Pram's trip is his first 
to Europe as Prime Minister: 
He is accompanied by .a. party 
of more than 50 people, about 
half of them . businessmen. 

The mission’s objectives are 
almost purely economic. 

A key British interest is in 
a contract .valued .at nearly 
U.S.? 640m (£S65m) to expand 
a Thai oil refinery at Sri Racha, ' 
south-east of Bangkok. 1 

The British company Davy. 
McKee t together with two 
French, concerns, signed, n -con- 
toact for the' project earlier this 
month, hut the deal awaits the: 



Prem Tinsuianonda 
“Prime Minister by default” 


approval of the British Export 
Credit Guarantee' Department 

Asfpa'Its counterpart in .the 
French Government. ' 


.4 










V 






wwmmmtr 





financial Times Tuesday April 27 1982 


rch a 


WORLD TRADE NEWS 




Japan’s plans for 

liberalisation 

run into difficulties 

*Y CHARLES SMITH, FAR BAST EDITOR IN TOKYO 


staler 


- PREPARATION OF Japan's so- 
. called “second market-opening 
r package " appears to have run 

into difficulties as a result of 

- intransigence of the part of 
; bureaucrats at the Ministry of 
: Agriculture. 

Because .of the difficulties it 
. seems highly unlikely that the 
. government will be in a position 
. to unveil the package on May 7* 
i as had been hoped. 

‘ ' . A release date near the end 
\f of May is being considered 
instead, but even this later 
v. deadline could prove hard to 
. meet if the Agriculture Ministry 
refuses to bend. 

What is apparently being 
■ demanded from the Ministry is 
; a forecast — or series of fore- 
casts — of steps which will be 
taken over the next few months 

( to- enlarge, import quotas for 
farm products in which the U-S. 
- and. the KEG are- especially 
interested. 

The Ministry is finding diffi- 
culty in producing such a fore- 
cast, not because an enlarge- 
•' ment of quotas is completely 
ruled out, but because bureau- 
crats are refusing to abandon 
their- traditional strategy of 
‘ keeping concessions secret until 
- the last moment. 

’ Full-scale negotiations 

■ v between Japan and the U.S. on 
; citrus and beef are due to start 
: ha the autumn. 

Japan decided to put together 
1 a- second market liberalisation 


package after visits to Europe 
and the -U.S. by politicians 
during February and March 
revealed profound Western dis- 
satisfaction with its earlier 
measures. 

The May package- is expected 
to contain new tarifF-cuttLng 
proposals as well as a statement 
of Japan's willingness to discuss 
the liberalisation of trade in 
services within the framework 
of Gatt. 

Officials admit however, that 
It will be hard to make the 
package look attractive without 
some input from the Ministry of 
Agriculture. At the moment 
this seems lacking, despite pres- 
sures on the Ministry from else- 
where in the government 

The dropping of the May 7 
deadline means that Japan will 
have nothing to offer its 
Western trade partners at the 
next “trilateral” trade con- 
ference, scheduled to be held 
is Paris in mid-May or at the 
OECD ministerial conference 
scheduled for May 10 and 11. 

The OECD meeting, which is 
also to be held in Paris, will 
be attended by two senior 
Japanese Ministers, Mr Saku- 
rauchi. the foreign minister and 
Mr Toshio Komoto. the Director- 
General of the Economic Plan- 
ning Agency. 

The Japanese delegation to 
the trilateral meeting will be 
beaded by Mr Shintaro Abe, 
Minister of International Trade. 


American Can presses 
on with Philippines plan 


, * • grade c 

i-K .vkrss 


- BY GIULIA TAGAZA IN MANILA 

AFTER TWO years’ delay, i 
Americas Can, one of the ■ 
biggest Ui». manufacturers of 
tin cans, is pushing through ; 
plans to build a 354m (£30m) i 
plant in the Philippines. j 

A joint venture agreement i 
has been signed -with the ] 
United Coconut Planters Bank I 
(UCPB. with American Can i 
taking in 40 per cent of the ] 
equity of the new company 
called United Philippine Can I 
(UPCC). « 

. UPCC is to manufacture, food- 1 
grade cans. Specifically, it will i 
turn out 3B0m a year of lead- -c 
free, two-piece drawn tins for. t 
the beverage and food process- t 


mg industries. All raw materials 
will be imported. 

In early 1980, American Can 
agreed to tie up with Elizalde, 
the ODly tin plate manufacturer 
in the Philippines. But the 
agreement could not be im- 
plemented because of certain 
bitches including the financial 
difficulties - encountered by 
Elizalde. 

The same year. Continental 
Can. also of the U.S., was given 
a Government permit to estab- 
lish a $27m plant in partnership : 
with the Ayala Corporation, one 
■of the biggest local concerns 
engaged primarily in real 
estate development. 


British Rail 
wins £24m 
order from 
Kenya 

By Our World Trade Staff 

BRITISH RAIL Engineering 
(Brel ) has won a £24m 
export order for the supply 
of passenger, coaches to the 
Kenya Railway Administra- 
tion. 

The order, for 74 coaches, 
is the seeond major export 
deal of the year for Brel, 
which recently announced a 
contract to supply 124 main 
line passenger vehicles to the 
Irisb State Transport Com- 
pany. Total export orders for 
2982 so far are valued at 
£50 m. 

Hie coaches will be built 
at Brel's Derby works with 
deliveries beginning at the 



Spain decides on shake-up for shipyards 


end of 1983. The coaches will 
comprise 40 second class 
couchettes. 25 first class cars, 
five buffet ears and four 
restaurant carriages. 

• BICC Telecommunication 
Projects of Prescot. Mersey- 
side. has won a £2.tim contract 
by GEC Telecommunications 
of Coventry for supply and 
installation of a carrier and 
audio telecommunications 
cable network for the 
Zimbabwe National Railways 

• LAL, tiie London aviation, 
technical services concern, is 
to supply £2m in security 
equipment to 20 airports 
throughout Indonesia, follow- 
ing a contract award from the 
Indonesian Ministry of 
Transport and Tourism. 

• .Arthur Young Management 
Services of the UK has won 
a £2m order from the Jordan 
Ministry of Flnanee to under- 
take a pre-investment study 
and project supervision of 
an Integrated, computerised 
management Information 
system. . 

• APE Pipelining Services, 
part of the NEI group, has 
won a £L4m contract to 
supply cleaning and lining 
water carrying pipes for the 
Hon Yani water augmentation 
scheme in Harare, formerly 
‘Salisbury. 

• Howe-Baker Engineers of 
London have been awarded a 
£lm design contract for a 
hydrogen production plant to 
be supplied to the AB Nynas 
Petroleum of Sweden. 


SPAIN IS the last of the 
major . Western shipbuilding 
nations to adjust to the sharp 
recession in world shipping 
business. 

The third biggest ship- 
builder In the West, it began 
to consider a shake-up in its 
major yards only In 1978 at 
a time when most orher 
nations had already completed 
restructuring plans. 

Spain . has slipped even 
further out of step because of 
-the extraordinary slowness 
with, which its own restructur- 
ing plans have matured. The 
.final plan for the big slate- 
controlled shipyards was 
announced recently and- still 
has to • be approved by 
Parliament. 

At -‘the time -of the first, oil 
price shock in 1973, Spain’s 
economy was In full bloom and 
Che effects oT the sharp price 
increases were obscured until 
late 1975. 

• Even then,- fn the case of 
shipyards, there was a mood 
of buoyancy- because domestic 
orders still reflected exaggera- 
ted optimism for growth, 
espeoally in the all-important 
area of transport of petoleum 
and petroleum products. 

Once the Government 
decided’to act, it was hindered 
by fragmented ownership. For 
instance, until 1977 - the state 
holding company. INI. owned 
only 50 per vent of the largest 


group, Astilleros Espanoles 
(AESAJT. The rest was in 
private hands. 

Once the decision was taken 
to take over these - private 
shares— the hank?, holding 
most of them, were more than 
happy to offload what had 
become a loss maker —plans 
were slowed by a combination 
of bureaucracy, lack of clear 
objectives, frequent changes in 
the Industry Ministry ami fear 
of "major redundancies. 

Thus, for the past four 
years, temporary palliatives 
have been- provided, largely in 
the form of grants, and extra 
short-term credit, to cover 
mounting losses. This in ilselF 
has complicated re-organisa- 
lion. 

Two groups are " Involved in 
the plan. AESA ami Astunu. 
. which last year produced 
305.161 dwt. wilh a total work- 
force of 24,000. There is roughly 
40 per cent overcapacity and 
production is now half that of 
1975. Since 1976 there have 
been accumulated losses of 
more than $lbn. 

Such losses have stemmed 
directly from over-capacity, a 
sharp increase in labour costs 
and a doubling of financial 
charges to 14 per cent of turn- 
over. 

During this time there has 
been a substantial switch in 
the type of ships built. In 1975. 
oil tankers accounted for 85 per 
cent of all orders and grain 
carriers another 10 per cent. 
Now tankers represent less than 


BY ROBERT GRAHAM IN MADRID 

13 per cent, with grain carriers 
covering 47 per cent and .vessels', 
not constructed previously 
account fur 18 per cent. 

The Government's new plan, 
which aims to cut the work- . 
force over the next three years 
by IS per cent, reties mainly 
on voluntary redundancy and 
natural wastage. This is modest, 
compared with other European 
countries. The EF.C average 


This, In turn. will lead to 
greater specialisation and more 
emphasis on recent develop- 
ments like offshore drilling 
platforms. Already, last Decem- 
ber. INI formed a company. 
Saiena, to develop alitl 
co-urdinate new technology. 

The yards will aim at raising 
their level of output to 430,000 
dwt by 1984 but this will 
remain well below that of the 


Once the Government decided to act, it was 
hindered by fragmented ownership. For instance, 
until 1977 the state bolding company JNI owned 
only 50 per cent of the lagest shipbuilding group 
Astilleros Espagnoles. The rest was in private 
hands. 


over the last five years has been 
a 40 per cent reduction in the 
labour force. 

The yards are either in areas 
hit badly by recession like 
Bilbao, or where alternative 
jobs are scarce like El Ferro!, 
near Corunna, ami Cadiz and 
Seville in the south. 

This has led to protracted 
negotiations wilh the trades 
unions and an acceptance ‘by 
INI that the cuts are less. than 
desired 1ml the mosr that can 
he politically tolerated. 

Parallel with this, the Govern- 
ment's plait will offer much 
closer integration within 'each 
group and between the two 
groups in technology, marketing 
and dealing with suppliers. 


mid and early 1970s. This out- 
put is based on export order 
projections of Hiifi.OQO diet. 

The management is confident 
of meeting this export figure, 
lint it is still apprehensive 
about domestic orders reaching 
1SO.0UU dWL At present, over 
St) pel- ceui of orders are foreign 
and there is no sign of an up- 
swing in domestic buying. 

Potential buyers complain of 
insufficient credit support from 
lhe Government and are 
nervous about any cummiunenls 
so long as the recession con- 
tinues to bile. With lln*»e pro- 
jections turnover is expected to 
increase front BMMlin [£5MKin) 
at the end of Iasi year to ¥1.4 till 
l>y .3984. 


UK companies ‘lack long-term policies’ 


BY A SPECIAL CORRESPONDENT 


FEW BRITISH companies have 
coherent long-term policies for 
j international trading. They 
lack strategic programmes, and 
techniques to monitor their pro- 
gress towards them. 

This is tie key conclusion of 
a unique study, which has been 
conducted for the last two years, 
into the nature and problems 
of International -trade among 35 
companies in the south, of 
England. 

The companies, which employ 
between 50 and 5,000 people in- 
clude electronic and computer 
concerns, a food manufacturer, 
a finance bouse and several 
technically-based . chemical 
companies. 

The study is being conducted 
by Mr Stanley Hyman. He 
started it in 1980 when he was 
Dean of the Southern Counties 
Regional Management Centr-e at 
Portsmouth Polytechnic. It will 


be completed in November. 

But the information avail- 
able so far has indicated to Mr 
Hyman that many companies do 
not know whether their exports 
are profitable. When exports 
are costed, overheads and per- 
sonnel costs may not be in- 
cluded. 

At the same time, the study 
has revealed that few people in 
the companies under scrutiny 
have been trained in the strate- 
gic management of exporting. 
Senior managers often, do not 
have time to train younger 
managers. 

The result is that younger, 
inexperienced employees may 
be put in charge of marketing, 
when it is increasingly apparent 
that salesmen need to be 
-qualified specialists. 

Mr Hyman has observed 
that one vital but neglected 
area is market research. Many 


\l 1 Exporters 
Al l at work ‘ 


companies do not make full use 
of the help available. Mr 
Hyman noted. Yet the Govern- 
ment will pay a substantial part 
of the costs, demanding re- 
imbursement only if the project 
is a success. Further help is 
available from banks, trade 
organisations and agems._ 
Although British companies 


do increasing business wilh 
fureign governments, especially 
with construction and defence 
ministries, many nevertheless 
fail io identify other potential 
projects tu The country enn- 
cerned. 

The foundation for the stndy. 
said Mr Hyman, is that "there 
is not enough investigation and 
analysis into the real problems 
of international irade— econo- 
mists tend lo theorise, while 
managers are too busy getting 
on with specialised jobs." 

So Mr Hyman and his two 
research officers, funded by a 
grant of £55.000 from the 
Foundation of Management 
Education, have been looking 
at all stages of the processing 
of export orders. This has been 
done through regular visits to 
eacb company, its bank and ils 
freight, insurance and overseas 
: agents. 


On the financial side the 
principal concern has been to . 
restructure costly short-term 
debt (44 per vent of liabilities) 
with new term credits and to 
provide fresh injections of 
capital. 

Debt service Is running at . 
SldOm a year. The hope is that 
last year's 825l>tn loss can be ■ 
brought to break-even point by 
19S4 or. at least, minimal loss. 
The precise nature of proposed 
state subsidy remains unclear 
and will only be clarified when 
Parliament considers the plan, 
probably late next month, but it 
will be vital in export 

coni pel iliviry. 

The importance of gening the 
plan approved is underlined by 
the impact of shipbuilding with- 
in the Spanish emnoniy. AESA 
and A si a no provide 0.3 per cent 
of GDI*, contribute 2 per cent of 
indusiriai production and , 
3i-ii)iim far 3 per cent of 
all Spanish exports. Further, 
they provide indirect employ- . 
mwit tu 120,(1(30 persons which 1 
represents 4 per cent of the in- 
dustrial labour force. 

The large naval dockyard and ■ 
shipbuilding operation (with a • 
capacity uf 3U0.1HH) dwt) o( 
Hasan is excluded from the plan. 

It is also part of INI but comes 
under the Ministry or Defence 
and works exclusively for the 
Spanish navy or on export naval 
orders. Meanwhile, the Govern- 
ment is still working on a plan 
to aid and reconvert the 1 
country's small and medium- 
si/etl shipyards in private hands. ■ 


Swedish Match 
enters Tokyo 
lighter market 


By William Dullforce In 
Stockholm 

SWEDISH MATCH is entering 
the Japanese market for 
disposable lighters through 
an agreement with Yaka 
Seiko, one of the largest 
distribution companies. 

The Japanese market absorbs 
about 350m disposable 
lighters a year which is equi- 
valent to about a quarter of 
the world market. 

Feu dor, Swedish Match's lighter 
company based at Lyons. 
France, signed a letter of 
intent with Yaka Seiko last 
-week, proriding for the 
distribution of ils lighters. 

There are also plans to estab- 
lish a jointly-owned company 
lo produce lighters in Japan 
with Feudor probably taking 
a 40 per cent interest 






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BARCLAYS 


International 









6 


Financial Times Tuesday April 27 1982 


UK NEWS 


BNOC may come under 
pressure to lift oil prices 


BY RAY DAFTER. ENERGY EDITOR 


THE British National Oil Cor- 
poration may soon come under 
pressure to raise North Sea oil 
prices. 

Several independent oil pro- 
ducers are considering an 
approach to BNOC following 
recent spot oil price increases. 
But they are unlikely to make an 
immediate formal request for a 
price revision. The companies 
are keen to see whether spot 
rates will maintain their rises. 

According to London traders 
yesterday, spot cargoes of North 
Sea Forties oil were being 
traded at about 835 a barrel, 
about $4 a barrel above the 
official contract rate and about 
$7.50 a barrel higher than the 
spot price just more than a 
month ago. 

The spot rale for Arab light 
crude has also risen signi- 
ficantly. to about $32.50, up 
$4.50 from a month ago. The 
traders emphasised that the 
spot market was quiet and the 
prices may nor reflect the true 
value of small cargoes. They 
said the spot prices of products 
indicated a lower true value of 
crudes: about $33 a barrel for 


North Sea oil and $30.30 for 
Arab light. 

Independent producers— com- 
panies which make money by 
selling their crude on the open 
market rather than by making 
refined products— are known to 
be watching the market trend 
closely. Some said yesterday 
that they might wait for the 
next Ministerial meeting of The 
Organisation of Petroleum 
Exporting Countries in Quito, 
Ecuador, on May 20, before 
deciding whether to approach 
BNOC. 

Officials within BNOC — the 
North Sea price leader-^were 
emphasising last night that as 
yet no company had applied to 
renegotiate contract rates. It 
was felt that market conditions 
had not changed sufficiently for 
the pricing structure to be 
renewed. Under the present 
contracts the $31 a barrel .refer- 
ence price for UK crude oil is 
to remain in force until at 
least the end of June. 

Much will depend bn 
whether, through production 
controls. Opec countries can 
maintain their pricing structure 


based on a reference price for 
Arab light crude of $34 a 
barrel. A report just published 
by stockbrokers Grieveson 
Grant concludes that Opec’s 
chances of maintaining the $34 
price are “ very high.” particu- 
larly if members . can weather 
the next two or three months 
of low oil demand. 

Sue Cameron -adds: -The 
likely future trend of oil prices 
will be a "vital factor" in 
Shell UK -decisions on the 
development of smaller North 
Sea oilfields, according to Mr 
John Raisman, chairman and 
chief executive of the company. 

Mr Radsman, writing in 
Shell UK's annual report, says 
Britain's self-sufficiency in oil 
could . he “ extended into the 
next century," particularly with 
the lower demand that is now- 
being foreseen. But this will 
only be possible if more off- 
shore oilfields are developed. 
Shell UK is willing to. carry 
out further development, pro- 
vided the rewards are adequate. 
Future- oil price trends and 
Government tax policies -would, 
therefore, both be key factors. 


Thailand 

contract 

discussed 

By Carla Rapoport 

The British Government is 
expected to discuss financing 
for a $33Dm (£lSi»m) contract in 
Thailand lonmrrow (Wednes- 
day! wiih top officials from 
Thailand, including the Thai 
Prime Minister, General Prem. 

Foster Wheeler Energy and 
Faster Wheler i Process Plants). 
UK subsidiaries of Foster 
Wheeler of the U.S.. have won 
the management contract for a 
$820m refinery expansion pro- 
ject in Thailand. 

The subcontractors, Davy 
McKee foil and chemicals) of 
the UK and Tcchnip and Proco- 
france of France can expect 
about $S4«»m in export orders 
for plan:, equipment and 
services shared equally between 
Britain and France. 


Five companies plan TV 
studio on Isle of Dogs 


BY LYNTON McLAIN 

AN £8.5m Independent tele- 
vision production studio is to 
be built in the centre of the 
London Docklands enterprise 
zone, intended to produce pro- 
grammes for Channel 4 tele- 
vision. for video and cable 
television when it arrives in 
Britain. 

The centre, to be known as 
Limehouse Studios, will be built 
by Limehouse Productions, a 
new television programme pro- 
duction company, on the Isle 
of Dogs ready for operations in 
12 months. 

Limehouse is owned by five 
companies which have sub- 
scribed ' half the capital 
required for the studios. The 
partners include Associated 
Newspapers and D. C. Thomson, 
both former shareholders in 
Southern Television, which lost 


its ITV franchise last year. The 
others are Drayton Consoli- 
dated Trust, the Scottish Invest- 
ment Trust and May Gurney, an 
engineering company based in 
East Anglia. 

Mr Michael Shields, chief 
executive of Associated News- 
papers, is chairman of Lime- 
house Productions. Mr Jeremy 
Wallington. former programme 
controller of Southern Tele- 
vision, is chief executive. 

Limehouse Productions has 
accepted an offer of a £2m loan 
from National Westminster 
Bank to go towards the studios. 
A further £2.25m « the subject 
of negotia lions with two un- 
named leasing companies. This 
facility would be used towards 
the acquisition of £3.25m 
worth of equipment for the 
studios. 


Machine 
tool aid 
may soon 
runout 

By Lome Barfing 

A GOVERNMENT fund to 
assist small engineering com- 
panies by providing grants to- 
wards the purchase of modern 
machine tools and other 
equipment, is likely to be ex- 
hausted within about two 
months of being set up. 

Mr John MaeGregor, Par- 
liamentary Under-secretary of 
State for Industry, said in 
reply to .a Commons question 
that 397 applications for 
grants under the £2Dm 
scheme had been received, 
and the average project cost 
was about £50,000. 

At least several hundred 
companies including many in 
the West Midlands, would 
benefit, he said. 

The Small Engineering 
Firms Investment Scheme 
(SEFIS) was set up at the 
beginning of this month and 
according to Mr Cyril Bcavor, 
the Birmingham-based Depart- 
ment of Industry official in 
charge, the response has been 
overwhelming. 

It indicated that small en- 
gineering companies had the 
desire to invest and that the 
scheme w r as exactly what they 
had been wanting, he said. 

If it is assumed that a high 
proportion of the applications 
are eligible for grants, which 
cover one-ihird of the cost of 
specified equipment. 

The Industry Department 
said that it had not yet con- 
sidered providing more money 
for the rest of the year in 
which the scheme operates. 

The following equipment 
qualifies: stationary metal 
working machine tools, either 
sequence, controlled or com- 
puter numerically con- 
trolled; non-rofootic weld- 
ing machinery; physico- 
chemical machine tools; metal 
working machinery incor- 
porated lasers or plazma and. 
metology equipment. 

SEFIS offers a capital grant 
of one-third of the total cost 
(not exceeding £200,000) of 
one project. Including the 
purchase or lease of one or 
two new machines but with a 
minimum cost of £15,000 each. 

It also provides necessarily- 
incurred tooling and accessory 
costs of up to 10 per cent of 
the cost of each new machine. 


Life insurance and pension 
inflows increase by 15% 


BY DAVID KARSH 

i 

! TOTAL INFLOWS into life 
insurance companies and pen- 
sion funds rose by a comfort- 
able 15 per cent las: year to 
£12.73bn, according to Govern- 
ment figures published yesier- 

day. 

Overaii inflows into non-bank 

■ financial institutions rose more 
. modestly, by 7.4 per cent to 
; £24.04 bn, reflecting a slight fall 

in the deposits of building 
! societies. 

Most, of the total inflows - 
; were absorbed in higher pur- 
, chases of gilt-edged stocks and 

■ a rise in loans for house 
! purchase. 

Purchases of gilts rose to 
i £6.42bn from £5.5&bn. bur the 
. institutions bought only £2.27bn 


worth of ordinary shares of UK 
companies compared with 
£2.47bn in 19S0. 

Total nei inflows into the 
institutions fell to £5.53bn in the 
fourth quarter from £6.3bn in 
the fourth quarter and £6.24bn 
a year earlier. 

The fall was mainly accounted 
for by a £53Sm repayment of 
bank debt, against borrowings 
of £401m in the third quarter. 

Deposits with building 
societies wrre hardly changed 
in the fourth quarter.- although 
a sharp rise normally takes place 
at the end of -the year. Inflows 
to insurance companies and pen- 
sion funds were also down at 
£2.9Sbn compared with £3.25hn 
in the previous quarter. 


Underlining the strong era*- 
petition building societies faced 
last year from National 
Savings, their deposits during 
the year totalled £7.06bn in 2981 
against a IT.lShn In I960. 

On the uses side, overall 
institutional purchases of 
ordinary shares of overseas 
companies slightly topped- tile 

figure for’ UK equities, up to 
£2.34bh front £2.20bn in IPSO. 
Overseas sharepurchases picked 
Up -in -.the -•fourth quarter from 
the low figure of the previous 
three months.. 

Loans for house .purchase 
rose to £8.63bn from £6.19bn in 
1980. Flows- into other financial 
assets in the UK increased 
sharply to £S96m from . only 
£Mm the previous year. 


Unit trusts 
launched to 
help small 


Individual judgments cause 
forecasts to differ, says 

BY MAX WILKINSON, ECONOMICS CORRESPONDENT 



MUCH OF the difference 
between economic forecasts 
results from “ adjustments " 
reflecting the judgment of 
individual forecasters, the Bank 
of England says in a research 
paper published yesterday. 

The paper, which, analyses 
three of the main independent 
forecasts for 1982 made last 
autumn, suggests that dif- 
ferences between computer 
models of the economy or of 
assumptions fed into the com- 
puters accounted for a relatively 
small pan of the discrepancy 
between their predictions. 

The three forecasts considered 
in detail were from the National 
Institute of Economic and Social 
Research CNIESR). the Ixmdon 
Business School (LBS) and the 
Economist Intelligence Unit 
(EIU). 

The paper says the published 
forecast of the three organisa- 
tions for the increase in' the 
UK's total output in 1982 com- 
pared with the previous j'ear 
were all fairly close. 

They were: NIESR — 0.6 per 
ceni; LBS — -2 per cent and ERJ 
— 0.5 per cent. If the same 
assumptions about the general 


(Advertisement) 


Quarter-to-Q Barter Changes in Rates of Contribution to GXP 


PAI-ICHI KANQYO BANK 


DKB ECONOMIC REPORT 

April 1982: VoL 11 No. 4 

Horizon of Japanese economy becomes 
ov ercast as exports begin to subside 


Anxiety is coming to be felt 
about the future of the Japa- 
nese economy as its expansion 
has come to a standstill while 
the economies of other indus- 
trialized countries continue to 
be in the doldrums. Growth has 
come to a halt because exports 
that led the growth in the past 
are sharply slowing down, with 
recovery of domestic demand 
still a way ahead. The yen, 
under the impact of high inter- 
est rates in the U.S., is showing 
erratic movements. And the 
Government is finding itself in 
an impasse as to policy options 
because of constraints imposed 
by fiscal restructuring pro- 
grams and trade friction with 
foreign countries. 

Ne g ative g rowth in 1981 
fourth quarter 

Real gross national product 
in the 19B1 fourth quarter re- 
corded a drop of 0.9 per cent 
from the preceding period 
i3.5 percent at an annual rate: 
after seasonal adjustment. The 
first drop in almost seven years 
since the 1973 first quarter in 
the wake of the first oil crisis, it 
came after a moderate but a 
sustained growth in the preced- 
ing three quarters — 0.7 per 
cent in the first, 1.2 per cent in 
the second and 0.7 per cent in 
the third quarter. 

The single most important 
factor for the negative GN'P 
growth in the fourth quarter 
was the slowdown of exports 
which until the third quarter 
had maintained a vigorous ex- 
pansion with automobiles and 
video tape recorders showing 
particular strength. A domestic 
factor was a decreased volume 
of the government's purchase 
of rice owing to two consecutive 
years of poor crop. Current 
overseas surplus (exports, etc. 
minus imports, etc.) was re- 
sponsible for a 1.3 percentage 
point decline of GNP, and 
public demand 0.3 percentage 
point. In contrast, private final 
consumption expenditure, busi- 
ness capital investment and in- 
ventory investment all reg- 
istered a gain, making a 0.7 
percentage point contribution 
to the GNP grow th. Housing 
alone remained negative 
among domestic demand 
items. 

The pattern of business in the 


preceding quarters led by ex- 
ternal demand with private de- 
mand putting a drag broke 
down in the fourth quarter, and 
a combination of a faltoff 
of exports and a prolonged 
delay in full-blown recovery of 
domestic private demand 
emerged, betraying the ex- 
pectation that the latter will 
take over as leader of economic 
expansion. 

Slowdown in exports 

Optimism does not seem due 
for the future of exports- After 
rebounding with a 9.0 per cent 
increase in January over a 
year ago in dollar terms, ex- 
ports on a customs clearance 
basis recorded a 3.7 per cent 
drop in February — the first 
drop in six years — despite a 
weakening of the yen. The rela- 
tively high growth in January 
reflected a temporary factor of 
concentration of deliveries of 
ships, and all major commodi- 
ties showed a drop from a year 
earlier level in February; TV 
sets were off 25.2 per cent in 
terms of volume, and auto- 
mobiles, 15.2 per cent, for ex- 
ample. 

Despite such weakness of ex- 
ports. the heavy trade surplus 
with the United States and the 
European Communities re- 
mained unchanged because im- 
ports from them continued 
stagnant, and trade friction 
with them appear headed for 
further escalation. Exports to 
the United States in dollar 
value in February rose 7.1 per 
cent over a year earlier, or 
much slower than in the 
preceding months, but imports 
from the country fell by 10 per 
cent, keeping the trade surplus 
at a high level of cJ<*e to $1.2 
billion. 

Prolon g ed slump fo per- 
sonal consumption 

Inflation-adjusted consump- 
tion expenditures by house- 
holds last December dropped 
0.6 per cent from the year-be- 
fore ieveL according to a survey 
by the Prime Minister's Office. 
As a result, average real con- 
sumption expenditures in 188 L 
as a whole declined 0.8 per cent 
from 1980 — drop of two 
consecutive years. 

Housing is stiff in a dtsep 
slump since last year; housing 


starts in January fell ZZ per 
cent from a year earlier — 
drop of eight consecutive 
months. In an attempt to spur 
housing, the Government is 
easing, starting in fiscal 1982. 
taxation on income from sale of 
land and raising the level of tax 
exemption on purchase of 
home, but these measures are 
practically ineffective in bring- 
ing down housing costs which 
have skyrocketed far out of the 
reach of average wage earners. 

In the meantime, corporate 
capital investment generally is 
continuing firm. A Bank of Ja- 
pan survey us of February) 
revealed that such investment 
by major firms in the six 
months ending March in- 
creased by an estimated 10.7 
per cent over the preceding six 
months in the manufacturing 
sector and 6.1 per cent in the 
non-manufacturing sector. It 
also showed that planned in- 
vestment for the six months to 
September was up 10.6 per cent 
and 13.5 per cent, respectively. 
Investment by smaller enter- 
prises. on the other hand, is 
estimated to have dropped 0.3 
per cent in fiscal 1981, but the 
size of drop turned out nar- 
rower than the finding in the 
survey made in November, last 
year. 

Sluggish demand both .at 
home and abroad is keeping 
production activities lagging. 
Seasonally-adjusted mining 
. and manufacturing production 
in November, last year Yell 0.3 
per cent from the preceding 
month, fell again in December 
by 0.7 per cent and 0.1 percent 
In January. Shipments also 
kept declining for three months 
in a row. 

Stable trend of prices 

The exchange rate of the yen 
swung to a weakening after the 
turn of the year front A trend 
toward strengthening in the 
latter part of last year. In Feb- 
ruary, it showed highly volatile 
movements around ¥235 in 
February and around ¥3*0 
a gainst the U-S. dollar in March. 

One major factor cited for 
such volatility was the signs of 
rebounding of U.S. interest 
.rates since around the end of 
last year. But this is not alt, 
Domestic factors are also be- 
ginning to add to the weakening 


(SI 

1.5 


1.0 


0.5 h 


—0.5 


-JJ) 


-1.5 L 


GNP (real) Danube pwatc demand 



Current 

overseas 

surplus 


Jul.-Sept Oct. -D ec. Jan. -Mar, Apr. -June Jut. -Sept. Oct- Pec. 


1980 1961 

Source: Economic Planning Agency 


of the Japanese currency, now 
that misgivings about the 
course of the Japanese econo- 
my over the months ahead 
have come to be felt in the light 
of the contraction of GNP in the 
1981 fourth quarter. 

The impact of a weak yen is 
already showing up in prices, if 
to a small extent. As for whole- 
sale prices, export commodi- 
ties in February showed an in- 
crease of 2.2 per cent from the 
preceding month and import 
commodities 2.6 per cent. 
Prices of domestic goods which 
account for a major part of the 
wholesale price index remained 
unchanged in the midst of 
slackened supply-demand bal- 
ance, however. Overall, whole- 
sale prices in February ad- 
vanced by 0.5 per cent from 
January. Stability in wholesale 
prices is expected to continue 
in the months to come because 
of soft commodity markets 
both at home and abroad, com- 
plete with oil glut 
Consumer prices also are 
showing a marked stability. 
The year-to-year rise in the 
index for the 23 wards of Tokyo 
had remained in the 3-4 per 
cent range from August last 
year through February, this 
year, with the sole exception of 
December. Despite the pro- 
spects of raises in transporta- 
tion charges and tuitions at 
public universities after April, 
the calm trend of consumer 
prices will remain. 

Rising bond prices 
Due to slow business, corpo- 


rate fund demand continues 
sluggish, keeping credit basi- 
cally easy. Since the discount 
rale cut in December, last 
year, the average contracted 
interest rate of bank loans has 
steadily been declining. 

With surplus funds flooding 
the money market, bond prices 
started to rise sharply in 
March. The secondary market 
yield on the 7.7-per cent gov- 
ernment - bond, for example, 
las fallen below the return on 
the new issue. Such a phe- 
nomenon owes itself to signs of 
a slight decline in U.S. interest 
rates and lessened necessity for 
private financial institutions to 
raise funds through sale of gov- 
ernment bonds in the market in 
order to meet dema nd for loans. 

Under the circumstances, a 
cut in the interest rate on long- 
term government bonds and 
other long-term interest rates 
was implemented starting a- 
round the end of March. 

It is not assured, however, 
that the secondary market 
yield on government bands will 
continue to decline in the 
future. One factor that can dis- 
turb the trend is the very vola- 
tile movement of the U.S. inter- 
est rate. Another concern is a 
possible adverse impact on 
prices of a further weakening 
of the yen as a result of a 
lowering of long-Lerm interest 
rates. Constraints posed by the 
lagging domestic demand re- 
covery and by foreign factors 
keep the room for an effective 
monetary policy increasingly 
limited. 


London Branch: 5;n Ret*. PM BUg, Leadenteli Street. London EC3V 4PA, Engtand let OT-2B34929 

London Subsidiary: Dai-ichi Kan* a Intemaaonai Ld, 13, Cotege Wt. London EG4R 33A. Engtand Tel 01-248-7021 

London Associated Companies: Associated Japanese Bank (IntemanoraJ) Ud, European Brazilian Bank Ltd. 

Head Office! 1-E, Uchisaw.girho C^.txta-ku.Tohri 100, Japan Tet (051 596-Hfl nrenchM and-Ayancy *fc Nfiw'imk 

La; Anjeies. Chicago. Panama. Dussatforf, Tawi, Seoul Sixjapore Hapwrt a Bra Offices sfc Houston. TorortaSSoRaulc, 
Meuco uV- Cassis, Euar.os Aires. Frenriu::. Pans. Maond, Bahrain, Bangkok. Jakarta, Kuala L'jmpur, Sydney SubsKflanaa at 
Los Angeles, Taorco. Amstema-n, “unsfc, Hong kwg AssoaMed C o m pa rt — at: Rode Janeiro, Laambuft Hong Kong, 
Eingtek. Sirtfiapcre, Kuala Lurcpur, Jakarta. Mania, Melbourne, Sydney 


Talk it aver with DKB. 
The international bank 
that listens. 




ft Wg have your Interests at Heart. 

Si DAI-ICHI KANQYO BANK 


The nett DKB mouthy report wffl appear May 25. 


economic climate were fed into 
each of the three models, the 
predictions remained almost 
unchanged, with only an 
increase of 0!3 per cent To the 
LBS forecast. 

However, further analysis 
suggester that adjustments 
made to tbe computer model’s 
"mechanistic" predictions were 
in ail cases significant, and in 
one case had the effect of 
changing a "mechanistic” 
forecast that output would 
decline substantially into a pub- 
lished prediction of a small 
rise. 

The Bank's contents are made 
in its summary of a more 
detailed paper by Prof Michael 
Artis of Manchester Uniiversily 
called " Why do forecasts 
differ?" 

Both Prof Artis and the Bank 
say their conclusions must be 
taken with caution because they 
are based on just one set of 
predictions by forecasting 
groups. However, the analysis 
does reveal a surisingly lame 
clement of judgment on the 
forecasts for inflation of the 
Consumer Price Index. The 
"mechanistic" operation of the 
LBS model, for example would 
have produced a forecast of 


17.7. per qent-. annual inflation 
for the Index at the ^nd of 
this year. However, this was 
reduced -brYTiprcetirage ■points 
as a result of ihe forecasters’ 
judgment to produce a pub- 
lished prediction' of . 10.6 ' per 
cent : . . 

The Bank comments: "Adjust- 
ments' Or assumptions made by 
the. forecasters appear largely 
In have determined all the fore- 
casts for inflation. These adjust- 
ments- and assumptions concern 
mainly the behaviour of wage 
earnings, world .prices . (includ- 
ing oil) and the exchange rate” 

The Bank says the adjust- 
ments made by forecasters arc 
not typically of a mechanical 
nature but reflect the " off- 
model views of tbe forecasters 
as to the way the inflationary 
process works. 

"None of the -three fore- 
casters appear to attach great 
importance to the previous 
growth of the money supply. as 
haying a direct, influence on in- 
flation as distinct from -an influ- 
ence on the exchange rate.’* 

Brnifr of England Paper 17. 
available from University 
Microfilms International. 30-32, 
Mortimer Street. London, 171. 


W. H. Smith holiday move 


by james McDonald 

W. H. SMITH & SON, the High 
Street retailing chain, is to sell 
time sharing at all its S8 travel 
agencies in the UK. 

The move into time sharing — 
by which a once only capital 
payment secures the right tn a 
holiday home for a number of 
weeks each year— has been 
made by W. H. Smith Travel in 
conjunction with Asset Inter- 
national. one of tbe largest time 
sharing marketing companies in 
Europe. 


Asset has .properties, -in. 
Britain. Spain. Switzerland. 
Florida and the West Indies 
and W; H. Smith Agencies will 
be able to handle all travel, 
.inspection. and . purchase 
arrangements, including loans. 

Each travel agency will have 
a Prestel unit linked to- Asset's- 
London head office,- giving the 
latest^ details. on. the timing, of. 
inspection visits and informa- 
tion on the availability and cast 
of time share weeks. 


. By Tim Dickson _ '.'Jr 

A UNIT trust -ha^ . bew 
launched to enable ,' p*a«dc»j 
funds to invest in property )# 
to small businesses in Greater 
■London. "H ■ 

The initial tragete.fevfl&n, . 
but a start was made yesferdiy 
when the first cheque for; Situ 
was handed over hythfeCrwtter 
London Council SUfi:?ensi«a 
Fund. A further .IT^Jas 
been promised infothaByi 
: The trust, .which is? tix 
exempt and unauthorised by 
the Department of Trade*_Jm 
boon created primarily.. foY. the 
pension funds of local authori- 
ties through ibe probioter*-*- 
Cipfc - -Services, / .wttggfa 
Granby Hunter, and Urbjui 
and Economic Development 
tlJrfc'ed ). Other pension fuj^dr 
will be welcome. • v . ? ' 

The promoters said: /“We 
believe that the - invwtjfcehl 
criteria -of -many financiai iBsff- 
tutrons, which have" histeriaffly 
concentrated on prime property,- 
have led to missed opportunities 
■ "There! is an unsatidfcfl> 
demand for well-located,. 
able, accommodation for; sanfi 
firms." * The initial -yield- :«i 
invested funds is - expected /to 
be able 9 per cent: 

The trust will mainly acquire 
fully let properties in improv- 
ing areas and- where there to # 
high concentration of demand. 
Most* of the portfolio will be in 
-industrial buildings with units 
ranging between 500 sq ft and 
5.000 sq ft. However, offices *nfl 
other property catering- for 
small firms wHl be included. 

IMI redundancies - -.- 

TIIE COPPER TUBE diyisW. 
of Hit Yorkshire Imperial, n 
IMI subsidiary, is .cutting, a.. 
quartrr of the work force et its 
site at Kirkby. Liverpool-. This 
means more than 300 jobs wtU 
go - in the autumn. ‘ 

The company saiti Jftte was 
part of a process gf Mrearhhn- 
ing the Kirkby bperaffdn ^ ibd 
making belter tiMrof Us topper- 
casting capacity , .to' the 
Midlands. -'.V.— >' - 

:v . 

Matsushitaplans ; . 

MATSUSHITA > ELECTRIC 
hopes to increase production of 
colour TV sets aL it* Cardiff 
plant from S7.000. units last year 
to about 200.000 units in tv» to 
three years, the - company a»W 
yesterday. 

To do this Matsushita -will 
install another preductitmcifrie 
in Its factory. .It. will sba aeek 
to. reduce . the cost of com- 
ponents -front inside the.: EEC 
so as- to raise the Cardiff plant's 
ability to compete in ovfcis|as 
markets. • - . ’ - .- r - 

Vehicle registratii» V. • 

VEHICLE REGISTRATION 
documents will ia future show 
the previous as well as ifte 
current keeper's name and 
address. The. additional informa- 
tion will help, buyers of second- 
hand . vehicles establish the. 
history of a vehicle. - - 


CBI president names ‘cabinet’ 


by iames McDonald. . 

THE MEMBERSHIP of the 
most influential committee 
within the Confederation of 
British industry was disclosed 
publicly yesterday for the first- 
time by Sir Raymond Pennock, 
president of Britain's leading 
employers’ organisation. 

Sir Raymond, naming the 31 
members of the so-called Presi- 
dent's Committee in the current 
issue of CBI News, says it covers 
the entire cross-section of busi- 
ness and comprises "some of 
the most outstanding business- 
men in the land.” 

It meets monthly . — and 
occasionally in emergency ses-’ 
sions over a specific issue — 
to advise ihe president on the 
co-ordination and implementa- 
tion of CBI policies. 

It prepares the way for meet- 
ings with Government and other 
bodies., keeps the CBI’s public 
position under review and pro- 
vides guidance to the president 
and staff on strategic and tacti- 
cal considerations. 

Sir Raymond writes : " I have 
mentioned as a personal objec- 
tive during my presidency the 
need to ensure that people of 
the highest calibre should be 
representatives nf the CBI. Over 
the la it two years a good deal 
of effort has been directed at 
securing a wide-ranging mem- 
bership of the President's 
Committee. 

nnc of my greatest personal 
satisfactions lias been that, in 
extending invitations to a num- 
ber of distinguished men in this 
category, ait of those I have in- 
vited to join have accented.” 

In addition to Sir Raymond. 
Sir Terence Beckeu, the 
director-general of CBI, and Sir 
Campbell Fraser, the deputy 
president, the. members of the 
committee are: 

Chairman of other CBI commit- 
tees: Sir John Read (finance 
and general purposes commit tee 
and chairman of -the Trustee 
Savings Bank- Central Board »: 
Mr Ronnie U tiger (economic 
and financial policy committee 
and chairman ' of .-.British 
Aluminiuml: . 

Mr Astiey Whitt a II (employ- 
ment policy committee* and 
chairman of B5G International); 


Sir Austin Pearce (industrial 
policy committee and chairman 
of British Aerospace); Mr Derek- 
Kin gsbury (overseas committee 
and • group chief executive of 
Fairey Holdings) Mr John Rais-' 
man (Europe committee and 
chairman and chief executive of 
Shell UK); • • • 

Mr George Duncan - (com- 
panies committee and- chairman 
of Lloyds and Scottish) Sir' 
Richard Cave T { unemployment . 
steering group and chairman of" 
Thorn EMl) arid Mr Jeremy . 
Pope ^smaller firms 'committee ■ 
and finance and planning direc- 
tor- of Eldridge.-Pope and: Go.). •••: 

Other chairmen - of. \coihpanies- 
on the committee are:. Sir 
Michael Edward es (BLd? Sir 
Arnold Hall (Hawker-Siddeley) ; ' 
Mr John Harvey-Jones - (XCI);' 
Sir Emmanuel Kaye (Lansing 
BagnalD;- ' Sir : ' Alex Jarratt 
(Reed International).; Sir David 1 
On- (C/niJeverfc-- Mr Derek' 
Palmar- (Bassl; Sfr Kenneth 
Corfield (STC): Lord Robens 
‘ f Johnson ~Matthey )VJ Mr., Peter " 


Walters (BPI-ahd . .Sir John 
Sainsbury (Salnsbnry’s). ■ 

Representing ‘the nationalised 
industries on Yhd committee is 
Sir Robert Marshall -of *7 the 
National Water Council ‘and 
chairman of the' Nationalised 
Industries ChairmetaV-. Group. 
The City is represented:!# 5lr 
Jeremy Morse. <^airihaii7.'of 
Lloyds Bank and '.chairman 'of 
the Committee of Lohdoa Glar- 
ing Banks. .. ..; 1, . ~ .’. >*-.. 

.. Employers’ ..organisations ■; are 
represented - by ' Sir Peter 
Matthfews, president off . the 
Engineering Employers’ Federa- 
tion -and - chairman of .Vickers, 
.andby Mr Ken Cooper, director- 
general of the National Federa- 
tion of Building Trades 
Employers. 

Regional CBI chairmen on ffhe 
committee arer. Mr John -Main 
(South West); Mr John GOOld 
(Scotland)- and Mr Patrick -Rad- 
ford (East Midlands). .'.Lord 
Cornwallis, past; chairman 
the CBI's smaller firms eotiscfl, 
is.also. qn_ the .'committee. ~ - . ; 



at Govern Garden 

Tchaikovsky's 



"surely the most&uman of afl ! .. operas® 

■ '■ _• Finatiriaf Times ■ ‘ ‘ - 

;■ Cascindndesr “ ' 

. .Gabriela Befiackovj; Nicolai. Gedda; Sergej 

, __ ^ ..^oiaminLuxott .... 

..... Graduatin' Yuri Skncmoy ._ 

- -. ' - V* . . Prica:.£5,50.-.n2.-Sa-. : .. . . ", 

Reservations 01-240 HQ0 Access/Visa Bookings: 0143$ 690$ 

* Pro^-poformancts apmtsorcd by Midland Bankr- 
TOO stalls places available at £in the das 
" ■ onchonr befereEartnanp - ■ - 

1 1 





7 


Financial' Times Tuesday April 27 1982 



UK NEWS 


;\*« 




■C .ll! 


!;3S 




•ca 


r* 

- 

. ir*>" 


Durham to contest . 
Shildon BR closure 

bt nkx Garnett, northern correspondent 




DURHAM COUNTY COUNCIL 

offiriafls ore meeting: local 

British Radi representatives 
today before seeking a meting 
with BR at nationallevefl over 
its proposal to ckee the wagon 
works at Shfidon with the toss 
of 2,500 jobs. 

The Council, whidh has 
already written to Mr Patrick 

Jeakin, Industry Secretary, 

co mplainin g about th» proposal, 
sand yesterday that the employ- 
ment base of toe town could 
virtually disappear, leaving SO 
per cent tmemjAoynient— 
higher than at Ccmsett, ftatrtfear 
north. 

The txrancsl says toe British 

Haxhvays Engineering woks 
provide 64 per cent of marm- 
fact uring employment and 86 
per cent of male manual 
employment. 

The proposal to dose toe 
ShilMon works — which Is begin- 
ning ho meet strong umon oppo- 
sition— is part of a. move to.cnt 
5,000 jobs from BREL, partly 
because of sarpOns capacity. 

The reaction, of toe coopty 
reflects a feeling that toe North 
East (is bang expected to 
shoulder a greater share of 
dosnres daring re at r mAu i- lng or 
slimming of companies with 
sites across toe eoontsy. 

These decisions, .it says. 


appears to be taftsen with Htfle 
regard .for toe "catastrophic 
consequences " for toe . people 
living in toe region. 

While .be recognised BK*s 
production difficulties, Mr James 
Wilson, toe county’s ptarmtng 
Officer, said Shfldon "is not the 
place to make cats." 

The town, which has a popula- 
tion of 13,000, is in the Bishop 
Auckland catchment area, which 
now has a 17.3 per cent un- 
employment rata. 

The other major empl oyer s to 
toe town include textile com- 
panies AstraSca, and Noxtoem 
Cloftlnfc and Westair Dynamics. 

The area~around toe town of 
Consett, wtakh- has a population 
of about 35,000, has. a 25 per 
cent unemployment rate; - Mr 
Wilson said that- more Jobs 
would be lost by the closing of 
Shildon than had been created 
by the special efforts made at 
Consett since toe steel plant 
closed- there more than two 
years ago. 

The council will press toe 
Government for extra finance 
for industrial development in 
toe Shildon area, compensation 
for loss of rats income, and a 
reversal of toe decision to 
downgrade toe Bishop Auckland 
area from Development Area to 
Intermediate Area status in 
August. 


APPOINTMENTS 

Export post 
at Barclays 

Mr Malcolm Stephens, an 
under secretary at toe Export 
Credits Guarantee Department 
from 1873 until earlier toss 
mouth, has been appototed an 
assistant director of toe inter* 
wunnnari finance tifvisram of 
BARCLAYS BANK INTERNA- 
TIONAL. He wifi have -specific 
responsibility for export projects. 
* 

Mr B. H. Sharp has been ap- 
pointed a divisional advances 
controller in MIDLAND BANK’S 
corporate -finance division. Pre- 
viously he was a General mana- 
ger’s assistant 

M r Cyril Howard has joined 
TTTT.T, Sc DELAMAIN as group 
commercial manager designate. 
He was managing director of the 
Panduir overseas - division and 
chairman o£ Pandair Freight 
Ino, U.S. 

* 

lb* bn Colin On>Ewfnfc 
' executive chairman, and Mr Tom 
Hatton, a director, have resig ned 
from the board of BERKELEY 
EXPLORATION AND PRODUC- 
TION. Mr Lloyd Forsey, explora- 
tion manager, and Mr Henry 
Boyd, secretary have been ap- 
pointed executive directors. Mr 
Charles Williams, managing 
director of Henry Ansbacber, and 
Mr Claude Menetrier, managing 
director of - EM UK. -and Mr 
Andrew Wilson, finance manager 
of Elf UK, have been appointed 
nonexecutive directors. Mr John 
H anna m and Professor Robert 
Stone ley remain as non-executive 
directors. Mr Williams will be 
chairman. The restructuring of 


the board has arisen following 
the purchase of a 29 j 8 per cent 
in terest in Berkeley “by Elf UK 
from RCA International. 

* ’ 

The ABBEY LIFE ASSUR- 
ANCE COMPANY is making toe 
following changes on May 1. Mr 
David G. Morris wBL become 
ansUtern- executive director, 

agency Redd operations 

A new agency division fs being 
established by Mr W. Mitchell, to 
provide technological, business 
management, and otoer sup p ort 
. services. 

In toe broker division, Dr J. 
Evans becomes executive 
director and a member of toe 
senior ma na g e m e n t team. 

* 

Mr M. J. Lead better has been 
appointed g enera l manager leas- 
ing of CHARTERED -TRUST, toe 
UK firwawt bouse . sabsRSazy of 
Standard Chartered Bank. He 
will retain his responsibility for 
oozporate planning. 

• ★ 

DYNAPAC .(UK) has appointed 
Mr.CHve Newman as managing 
director. Mr Newman has been 
general manager since July 1881 
. when the company was formed as 
toe wholly-owned British sub- 
- ridiary of Dynapac Maskih ABof 
Sweden.. 

+ ' . r 

Sbr James Spooner has resigned 
as deputy chairman and director 
of the NATIONAL M UTUAL 
LIFE ASSURANCE SOCIETY. 
Mr Norman Chalmers, a director, 
has been appointed- deputy chair- 
man. 

★ 

Mr- J. C. D. Goldschmidt will 
, be joining- the -partnership of 
LAURIE, SDLBANK & CO, 
stockbrokers, as an associate 
member on May L 


CONTRACTS 

£12m order 
for Bovis 

A contract worth about £12m 
has been awarded by toe trans- 
mission and technical services 
division o£ the Central Electricity 
Generating Boar d to BOVIS 
CIVIL ENGINEERING to con- 
struct a new 2000 MW 'high- 
voltage direct current converter 
station and a 400 kV substation at 
SeMindge in Kent. This is a three 
year project to provide a cross 
channe l direct cable link of 2000 
MW capacity between England 
and France. Bovis is responsible 
for all main civil engineering 
work on a site bounded by the 
M20 to toe north and toe Ash- 
ford /FoTkstone railway to toe 
south. Main part of the contract 
involves toe construction oif mi 
H-sb&ped block, about 110 x 100 
x 20 metres high, comprising toe 
thyristor valve balls and dc 
areas, linked by a central control 
block. ^ 

INTERNATIONAL COM- 
PUTERS has won a £250.000 
computer order from the Paki- 
stan National Shipping Corpora- 
tion fPNSC) to supply on-line 

data processiiw systwn. wtach 

will give PNSC directors direct 
access to toe computer from 


terminals .Installed in. their 
offices. 

The order comprises an IGL 
ME29 computer with 1 Mbyte. 

- of store, 800 Mbytes of disc back- 
ing store, two printers operating 
at 720 lines per mhmte, two 
magnetic tape stations 14= video 
workstations and six associated 
transaction printers. The com- 
puter wiB be installed at FNSCs 
head office m Karachi in Jane. 

.* 

HOTKEWSONS has received 
two orders worth £L25m. The 
first is an £800,000 contract for 
a variety of valves in differing 
sizes for three 660 MW turbo 
generators and 'associated plant 
. for toe GEQB’a Drax power 
station near Selby. The second 
contract is a £250,080 enter for 
boiler' valves for tog Esso 
Chemicals* -new ethylene plant at 
Messmaram in Fifestete. 

* 

GAP has won orders worth 
over £500,000 in the Netherlands 
through i ts D utch subsidiary 
company. GPP Nederland BV. 
Contracts include both -comaper- 
and industrial systems to he 
built for the Dutch Government, 
Nfederlandsche MhMenstmds 
Bank, Estel Boagovene Steel- 
works. Wang Computers, local 
go v ernment aid the Dutch rail- 
ways. 


r 


’v- v? ; 

Q0 



ACOMPREHENSIVERANGE 
OF DEPOSIT ACCOUNT 
EACHJTIES. 


Video film 
copiers pay 
£ 750,000 

THREE PEOPLE aHegeffly 
involved in a large-scale con- 
spiracy to counterfeit video 
film cassettes agreed to pay 
£750,000 damages and costs 
to the flhn industry in toe 
High Court yesterday. 

Mr Robin Jacob, QC. told 
Mr Justice Dillon that the 
three had been responsible 
For a “ factory” for malting 
counterfeit video cassettes 
above a betting- Shop in 
Queen’s Hoad, Northampton. 

Hr Charles Noble and Mrs 
Marilyn Noble, of Church 
Green, Kings Heath, 
Northampton, and Mr Ricky 
'Green, of East Oval, 
Northampton, agreed to give 
permanent undertakings not 
to make or seH any copies of 
less than 50 years old 
distributed by the seven film 
and video companies -who are 
plaintiffs fa toe action. 

They also agreed through 
their counsel, Mr Stuart 
Lawson-Hogets. not to “pass 
off** video cassettes under the 
name or trade marks of any of 
toe tn™ companies and to 
pay toe £750,000 and costs. ' 

None of toe three was pre- 
sent iu court, 

The action was brought by 
Warner Communications, 
Warner Brothers, Warner 
Home "Video, WEA Records, 
Thorn-EHl, MGM, 20th Cen- 
tury Fox and Video Pro- 
gramme Distributors. 


A city council looks to the countryside 


BY NICK GARNETT. 

ESSO IS in discussion with one 
of the district councils m 
Greater Manchester for the 
release of a piece of land owned 
oy .the oil company in the heart 
of of one Europe’s biggest 
industrial estates. 

The significance of toe 11-2 
acres . of tend and lake . in 
Traffond Paris, which Treffiord 
CouncH wants to acquire, is 
considerable. The council wants 
it to create an ecological park 
mainly for teaching and study- 
ing wildlife. And it would 
probably be toe first such eco- 
logioaa park in Britain outside 
London. 

However, toe concept of ast 
ecological park in the heart of 
toe world’s oldest Industrial 
estate is a symptom of the way 
Trafford Baric is trying to up- 
grade itself for competition 
with post-war industrial parks 
and development; corporations. 
Many of these are government 
creations which provide finan- 
cial f nf w rf i TOs ManniigyteT can- 
not match. 

As with so many industrial 
assets mid locations, Trafford 
Park has suffered by being the 
first of fts kind. Set up Just 
before toe turn of the century 
on L200 acres of land, R 
attracted industry from the 
start. • 

Fond built its first UK plant 
there and Rolls-Royce made its 
first oar- -there. Ait one lime, 
toe old Metropolitan Vickers 
Electrical site — now GEG — 
alone employed 20,000 workers. 
During peak employment in the 


last war, pezhaps 70,000 people 
worked on the estate which then 
was one of the world’s greatest 
wnoeotmtions of heavy manu- 
facturing; 

Trafford Bark now eanpfoys 
les s than half that number. 
That decKne reflects the decline 
In heavy engineering industrial 
decline generally and the reces- 
sion. It mirrors too the move to 
less labour-intensive service in- 
dustries and the competition of 
new industrial - parks, such as 
those at nearby Warrington. 

Nevertheless, there is stSI a 
very powerful concentration of 
manufacturing and . service 
facilities for some of toe biggest 
names in engineering, food- 
stuffs, metals and oil. The 
estate is also Jinked to a 
marvellous motorway network, 
as well as a Freigh diner 
depot a container terminal and 
the dories on the Manchester 
Shop Canal. 

By toe early 2970s, however, 
there were real fears that Traf- 
ford Park -was on an unstop- 
pable slide. As part of attempts 
to reverse that. Trafford 
Council introduced measures to 
try and upgrade the environ- 
ment. Many wasteland dumps 
were cleared up, . company 
frontages were improved, and 
some derelict rail lines were 
removed. The usable internal 
rail network has been cut from 
35 to six miles. 

Part of the new Trafford and 
Salford Enterprise Zone runs 
into the industrial estate. This 
zone has created some 600 new 


Around Britain : Trafford Park 



jobs, although a large propor- 
tion have simply -been re- 
located from the fringes. 

Overall, the competitive 
ability of Greater Manchester 
to attract industry wifi be 
weakened by toe scheduled loss 
this year of its Intermediate 
Area development statu s. 

The separate private, land 
agencies and the council have 
had considerable success in 
drawing in warehousing and 
other service functions, and 
there are probably as many, if 
not -more, separate employers 
in the estate now than at any 
other time. Dwelling-ho&ses 
are being converted for small 
start-up companies in the cur- 
rent vogue of encouraging and 
catering - for the small entre- 
preneur. Trafford; howeydr. 


needs high technology industry. 
It is having to struggle to 
attract it. 

The 2.7 acres of water was 
once a boating lake in the old 
de Trafford family park and 
has a history of land-fill and 
re-dredging. 

Some have criticised the 
ecological park scheme as a 
waste of time and money. 
Trafford Council replies that, if 
it can acquire the land and 
lake — -which might not prove 
easy because of differences in 
the way the council and Esso 
estimate its value — it could be 
used as a further fool to attract 
industry. Financial institutions, 
in particular, will invest in new 
buildings only, if they can see 
a prospect for growth. 

The scheme — which envisages 


toe expenditure of £108,000 
of council money — involves 
creation of a small wildlife 
reserve, an area of public open 
space and a reaching zone for 

primary schoolchildren. At the 

moment, the existing small lake 
has open-ground bird species, 
such as lapwings and snipe and 
water and waterside species, 
including curlews, coots an d 
ducks. 

A number of other habitats 
would be created — including 
one of woodland to attract 
warblers and tits; an artificially- 
created marsh to bring in 
waders and other duck species; 
and a muddy area far other 
waders. The council would 
hope to see different flora and 
some small land animals that 
have not yet settled in the area 
around the lake. But, as with 
the bird species, it would not 
introduce them artificially but 1 
wait to see how quickly new 
habitats attracted new creatures 
and plants. 

For wildlife specialists, the 
council says, such a park would 
provide a unique Insight into 
the interaction of habitats and\ 
fauna in an industrial environ- 
ment. 

Esso, however, may have 
other considerations. It has to 
assess what its future use of 
the site might bo. It may also 
believe that parr of the land 
is developable, and, therefore, 
saleahle on the open market. 

For the purchase the council 
can, at the moment, rely only 
on government grants for 
acquisition of derelict land. 



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Financial Times Tuesday April 27 1982? 


UK NEWS 


LABOUR 


deaths 
lowest ever 
last year 

By Brian Groom, Labour Staff 

UNDERGROUND deaths .of 
coal miners fell to. a record low 
of 23 in the year to March 19S2. 
The industry would have 
recorded its lowest ever total 
of- deaths, had fatal accidents 
on the surface not increased 
from - two to 10. 

Mr John Mills. National Coal 
Board member, told the annual 
conference of the- National 
Union of Mineworkers' Midland 
area in Blackpool yesterday. 
“The risk of fatal accidents in 
mining is now little ■ greater 
than the risk everyone run* 
every day' on the roads and in 
the home." 

Deaths below ground were 
three lower last year than the 
previous lowest, in 1979-Sfl. and 
14 below the 1980-81 figure. 

The results had been 
achieved at a time when the 
industry was attaining its best- 
ever -product ivity. Mr Mills, 
said. He claimed the figures 
answered those who feared that 
bonus incentives — sharply 
attacked by Mr Arthur Scargill 
an their .introduction — might 
tempt miners to cut corners 
and run .greater risks. 

“In the four years before 
incentive, fatalities averaged 
more than 50 a year. In the 
four years since the scheme was 
introduced the average has 
fallen to- 43 and the underlying 
trend continues downwards." 
Mr Mills 5 a id. 

A recent study had shown 
that mining was no longer the 
most risky occupation, he said. 
Railway workers ran about the 
same risk, deep-sea fishing was 
considerably more dangerous, 
and the death risk was twice as 
high in surface quarrying as in 
deep coalmining. 

Mr Mills added that Britain 
had consistently shown the 
lowest death rates among the 
world's leading coal producers. 

On productivity, he said that 
during the last two months 
coalface output per manshift 
had exceeded 10 tonnes 
throughout the industry. The 
average for the whole year, 
including one of the worst 
winters on record and the 
Aslef rail strikes, was more 
than 9.5 tonnes a manshift 


Government pressed by 
oil industry on taxation 


BY RAY DAFTER, ENERGY EDITOR 


THE OFFSHORE oil industry 
warned the Government that 
without changes in. the taxation 
system most new North Sea oil- 
fields awaiting exploitation were 
likely -to remain doubtful 
starters. 

Only two or three of 11 fields 
regarded as potentially com- 
mercial *cem certain to be 
developed, ministers were told 
by the UK Offshore Operators 
Association, which represents 
leading- North Sea companies. 

This was most alarming, bear- 
in; in mind that the last 
authorised development was 
that or the Hution Field .more 
than two years ago, the assocta-. 
tion said vesierday. 

. Following unsatisfactory 

changes to North Sea taxation 
in the March Budget .a further 
37 fields regarded . as economi- 
cally marginal were made even 
mare doubtful commercial 
prospects, it was claimed. 


Shell and Esso have already 
announced they are shelving the 
Tern' Field because of taxation, 
technical problems and uncer- 
tainties about future oil prices. 
For similar reasons BP is hold- 
inn the £500m development of 
its Andrew Field “ in limbo." 

The association has written to 
Sir Geoffrey Howe, the Chan- 
cellor. and to Mr Nigel Lawson,- 
the Energy Secretary, recording 
its unanimous concern about the 
“ penal tax burden. 

It said the total government 
take, about 35 per cent an aver- 
age and almost 99 per cent at 
the margin, cut the cash-flow - 
needed for new field develop- 
ment projects. 

The industry was also con- 
cerned because the Government 
was offering no ' incentive for. 
smaller fields which would be 
the bread and butter of UK off- 
shore oil development 

The association said the 


March Budget failed to provide 
significant relief from the tax 
burden. There was widespread 
concern in the industry that UK 
hydrocarbons— oil and ■ gas— 
would not be developed to full 
paten rial. 

It was “very regrettable " toe 
UK Continental Shelf had 
become much less attractive 
than other offshore areas of the 
world .for exploration and 
development 

The decline in North Sea 
activity had not only hit oil 
companies- but also cut the 
workload of the UK offshore 
service industry. 

British expertise was -being 
eroded. Jobs were being lost. 
The pace of exploration was 
failing to keep pace with 
demand. The industry was find- 
ing new reserves at a rate of 
only one-third to a half of oil- 
consumption. levels.. 


BA may seek further staff cuts 


BY MICHAEL DONNE, AEROSPACE CORRESPONDENT 


BRITISH AIRWAYS may seek 
further voluntary staff 
reductions, beyond the 9.090 
already achieved. if the 
retrenchment and reorganisa- 
tion plans now in progress fail 
to bring return to profitability. 

One view among the corpora- 
tion's top management is that 
for an airline carrying about 
16m passengers a year, even 
42.000 employees are too many. 
This level will he reached in 
the summer when the currently 
planned voluntary redundancies 
are achieved. 

Some further slimming may 
be needed, and a new target of 
35.900 employes could be 
declared as the new long-term 
aim. 

Meanwhile. the next 
objective, after the retrench- 
ment measures already 
announced, will be the reorgan- 
isation of the airline into profit 
centres, based nn the long-haul 
operations, the short-haul 
European and domestic 
operations, and the Gatwick- 
based activities. 

It is expected that Mr Gerry 


Draper. the director of 
commercial operations, will 
head the long-haul activities:’ 
Mr Peter Herrnon. director of 
management services, will run 
the European operations: while 
Mr Stephen- Hanscombe. head 
of British Airtours (the holiday 
flying subsidiary) will run the 
Gatwick operations. 

The present deputy chairman 
and chief executive of the air- 
line. Mr Roy- ■ Watts, will 
hecome the group managing 
director. 

The case for a further staff 
reduction is because some of 
the biggest airlines in the world 
have smaller workforces than 
British Airways. 

American Airlines, which 
carries about 26m passengers a 
year, has 41.000 employees and 
Eastern Airlines, with 40m 
passengers a year, has about 
40.000 employees. 

Among other retrenchment 
measures the airline may adopt 
is a wider spread of deliveries 
of its 19 Boeing 757 airliners, 
costing £400 m. The first air- 
craft is due for delivery early 


in 1983, with the entire fleet 
due into service over the follow- 
ing year. 

These deliveries may be 
spread over a longer period of 
18 months to two years, but 
there is thought to be no ques- 
tion of any cancellations. 

• The expansion of air services 
from Gatwick Airport. London's 
second main airport,- was 
boosted yesterday, when Trans 
World Airlines started its five- 
times weekly flights to New 
York. TWA already serves the 
U.S. extensively .from Heath- 
row. 

The Gatwick flights will oper- 
ate on Mondays, Tuesday, Fri- 
days. Saturdays and Sundays. 
The company will use Lockheed 
TriStar jets. 

TWA is expecting to make a 
profit on the route within the 
first year. It believes that over- 
all north Atlantic air ti-avel 
between Europe and the U.S. 
will rise by about 5 per cent in 
1982. and will continue to 
expand at about 7 per cent a 
year thereafter through the 
1980s. 


OFT study 
on vehicle 
transporters 
abandoned 

By David Churchill, 

Consumer Affairs Correspondent 

THE OFFICE of Fair Trading 
has been forced to abandon a 
proposed monopoly investiga- 
tion of car transporter com- 
panies which deliver vehicles 
from the manufacturers to the 
showrooms. 

Mr Gordon Borne, director 
general, had written last 
January to the five main car 
transporter companies — as well 
as to major car manufacturers 
such as BL and Ford — teiime 
them of his plans to refer the 
industry to the Monopolies and 
Mergers Commission for a full- 
scale investigation under the 
1973 Fair Trading Act. 

The OFTs concern was under- 
stood to be over the costs for 
cars transported from UK car 
plants compared with the cost 
of. transporting imported cars 
from the docks. The inquiry 
would also have looked at the 
degree of competition between 
companies and the extent to 
which discounts were offered 
according to the distance of 
transport. 

However, the strength of the 
response from companies in the 
transporter business was so 
great that Mr Borne has now 
decided to abandon the proposed 
investigation. In a letter to 
the transporter companies, 
manufacturers, and trade associ- 
ations Mr Borne says that, “in 
the light of comments and infor- 
mation received, I have decided 
not to proceed with a refer- 
ence." 

Mr Graham Roberts, manag- 
ing director of Cartransport, 
one of the main companies in 
th^ industry, said yesterday he 
was not surprised. 

" Ail the evidence must 
suggest that the car delivery 
companies are required to make 
considerable investment in 
land, vehicles, rolling stock and 
computers, and that the in- 
dustry serves its very demand- 
ing customers well." he said. 

He added that his company, a 
subsidiary of thp National 
Freight Company. " has made 
extensive investment in recent 
years to support our customers 
while we have had to earn our 
profits frosi increased efficiency 
rather than increased prices." 


Bryn Davies, leader of the Labour-controlled Inner London Education 
Authority, defends its record and explains its problems 

Measuring dogma against educational need 


MYTHS ARE the stuff of 
British politics. Whatever the 
current facts the Inner London 
Education Authority suffers 
from this problem more than 
most 

We are accused of being un- 
accountable and profligate. It is 
suggested our policies are pur- 
sued without regard to their 
consequences to the ratepayer. 
The truth, as is often the case, 
is rather different. 

Our . central aim. as an 
authority, is to maintain and 
improve educational standards 
in inner London. In the coming 
year we shall be spending in 
real terms about the same as 
1st year in spite of increasing 
cost s and substantial changes in 
the social composition of inner 
London leading to different and 
more expensive educational 
seeds. 

Tn point to our falling popu- 
lation and claim we should 
spend Te«s is tn show jgnoranre 
of the reality of everyday life 
in our city- "That ignnrancp is 
ton oFten selective. Compared 
with expenditure on the police, 
for example, expenditure on 
education has been a model of 
restraint. 

• First, while the number of 
school children has fallen, other 
more costly areas of the service 
have had to grow. Nursery 
education, facilities for 16- to 
19-year-olds, further and higher 
education have aH had to 
expand. 

• Second, the task faced by the 
education sendee has become 
more expensive. 


For example, our latest lan- 
guage purvey reveals that more 
than 44.000 primary and secon- 
dary school-children use a lan- 
guage other than English at 
home. 

The appropriate educational 
response to that is to provide 
intensive language teaching, 
generous pupil-teacher ratios 
and effective teaching material. 

The diversity of school in- 
takes is staggering. Some of our 
schools serve normal suburban 
districts. Nearby, in other areas, 
as' many as 95 per cent of the 
children may speak Bengali. In 
many parts of London the move- 
ment of population has been so 
great that not a- single child 
comes from parents themselves 
brought up there. 

The recent census and other 
figures confirm the nature of 
the change and the consequent 
instability which brings with it 
social and educational depriva- 
tion. More than 40 per cent of 
children now born in inner Lon- 
don are born to mothers them- 
selves bom outside the UK. 

Problems 

Inner London has the most 
overcrowded housing in the 
country, one of the highest rates 
of homelessness of families, a 
high number nf one-parent 
families, and rapid movement of 
families in and out of schools. 

Tn spite of -these problems we 
are concerned that the result 
we achieve should match any 
additional expenditure. Crude 
comparison of ILEA’s examina- 
tion results -with national aver- 


ages, however, is meaningless. 
What we have actually seen 
recently in inner London 
schools are signs of improve- 
ments or stability of achieve- 
ment in most trying circum- 
stances. 

At the primary school level 
the tests children take at 11 
now show results in their 
powers of reasoning which are 
above the national average. Our 
primary schools deservedly 
received praise recently from 
Her Majesty’s Inspectorate. 

Our secondary schools are 
now recovering from a decade 
of teacher shortage and begin- 
ning to benefit from comprehen- 
sive reorganisation in spite of 
other stresses stemming from 
flailing numbers and a changing 
intake. 

ILEA secondary schools have 
a less favourable intake at 11- 
plus than the rest of the coun- 
try and unsurprisingly the 
examination results reflect this. 
A comparison of results in par- 
ticular areas between examina- 
tion achievement at 16 and the 
academic range of the intake at 
11-pius shows good results in 
some of the most deprived parts 
of London. 

We believe our secondary 
schools are poised to advance, 
given stability in organisation 
and resources. 

Progress is monitored by our 
strong team of inspectors and 
new review mechanisms such as 
annual reports by schools to 
governors and parents, an 
annual examination-results 
review and a five-year self- 
appraisal procedure. 


What is less easy to judge 
for all educational authorities 
is how far the level of spending 
is “ right ” for the needs of its 
area. Her Majesty’s Inspectors 
in their recent report on the 
effect of cuts on the education 
service thought most education 
authorities were spending too 
little and only five were spend- 
ing enough. 

Ip its survey on ILEA Her 
Majesty's Inspectorate thought 
our provision generous. Under 
dose questioning, however, it 
was not prepared to say it was 
over-generous. On questions of 
educational priorities We rely 
heavily on professional recom- 
mendations. In this year’s 
budget all the expansion pro- 
posals are urgent in the view 
of the Education Officer. 

Performance 

Two reviews are starting on 
the question of value for 
money. The implement a tien of 
the urgent expansions requires 
matching savings. To achieve 
this, a searching review of all 
expenditure has been begun by 
sub-committees. 

A new members* performance 
review group seeks to cut out 
waste. In the first instance it 
■is looking at transport, tele- 
phones and building main- 
tenance. 

ILEA is composed of 
directly-elected Greater London 
Council members and directly- 
elected local councillors from 
the boroughs. I am always 
puzzled by the allegation that 


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this in some way makes us 
unaccountable to the ratepayers. 
If this is true of the ILEA then 
it must also apply to local 
government as a whole. 

For example, no members of 
Surrey County Council’s educa- 
tion committee have been 
directly elected in the sense 
that people know their elected 
councillor will sit on the educa- 
tion committee: the majority of 
Surrey's County Councillors do 
not. Every one of the inner 
London members of the GLC 
sits on the education committee 
of the ILEA as of right. 

Surrey County Council does 
not collect its rates direct: the 
Surrey district or borough 
councils have to send out the 
rate bills but are not repre- 
sented on Surrey County 
Council. 

In contrast ILEA embraces, 
borough council representation. 
These members constantly 
remind us of the relationship 
between our expenditure and 
local council services. 

The GLC and ILEA elected 
members are acutely aware of 
the heavy responsibilities they 
bear for the education service. 
It is nonsense to suggest they 
are accountable as far as the 
GLC is concerned but not for 
the ILEA. Education issues 
have always played an import- 
ant part in the GLC elections in 
inner London. 

Althouch the authority has 
survived three separate attempts 
in four' years to abolish it. a 
report in the Financial Times on 
March IS said the Government is 
planning yet another attempt. 

Inquiry after inquiry, how- 
ever. has shown that the control 
of education by individual 
boron cb counrils would mean 
an end 10 the present system of 
equitable sharing of the cost 

between the rich and poorer 

parts of inner London. 

Most people, of whatever 
political persuasion, accept that 
as a reasonable example of 
social justice. 

If this arrangement were 
abandoned we should see our 
deprived areas rapidly become 
even more deprived. The con- 
sequence of that can be pre- 
dicted fairly precisely, as can 
the effect on the well-being of 
London's commercial and 
industrial ratepayers. 

To threaten the stability nf 
the education service yet again 
would merely demonstrate the 
Government's elevation of 
political dogma above the crying 
needs of our children asd young 
people. ILEA exists to meet 
these needs. It is on that which 
it spends the City's and other 
•people's money. 


Call for end to 
juvenile custody 

A CALL for the abolition of 
borstals and detention centres 
was made by the London Inter- 
mediate Treatment Association, 
a group working with children 
and young people ir\ trouble. 


TUC outlines options for small 
unions on council representation 


BY IVO DAWNAY. LABOUR STAFF 


THE TUC "inner cabinet" 
yesterday agreed to offer Its 
smaller affiliated unions the 
choice of three separate 
methods for electing represen- 
tatives to the General Council. 

The finance and general pur- 
poses committee's proposals 
are expected to be hacked by 
the council at its meeting to- 
morrow. They will then be 
submitted to smaller unions for 
comments. 

The plans are part of a 
general restructuring of the 
council agreed by a majority of 
Um votes at last years 
Congress. 

Under the plan unions with 
more than 100.000 members will 
automatically have at least one 
scat on the council. But the 
methods -for representing the 
smaller unions were left to the 


TUC .secretariat to draw up. 

Smaller uninns have 11 seats 
on the 44-seat couneil. Unions 
gain representation on the basis 
of trade groups. The old system 
created intense lobbying by 
small unions, which needed 
large unions’ backing to win 
seats. 

Under the new proposals the 
number of scats remains: II.- 
The smaller unions will no 
longer -be dependent, however, 
on the patronage of larger TUC 
affiliates to win representation. 

The three options offered are; 

• A single list ol nominations, 
to be voted on by an electoral 
college representing all unions 
with fewer than IDOCflOfl 
members and allowing the 11. 
unions with most votes to take 
up seats. 

• A new trade group system. 


either allowing r votes. -«jjy ^ 
those unions hwotvtiS r tn the 
industry in question- -Of’.gMng 
all the small unions th# right to 
select representatives ; for 'each 
trade group. l 
• A banding system: allocating 
the 11' seats -to- untoiis '^pruiqped- 
hy the sue of .'theif - member- 
.ships. . / r 

Before atiy new-- method is 
-adopted t faren Hr e nft t r u ftftrriflg 
plan, including rittrpfinciple of 
automatic representation f 0r 
. unions wi tit mont than - 100,000 
members, faces fiercr-opposition' 
at the TUC arrauci, conference 
irr September. .Vi -.v > 
Loti-wing unloruv&tf their 
hold on. the Generiti^&uneil 
,wHi bn weakened by -. fee new 
.system. They belieyh. they; hay e 
a good- chance of reversing last 
year’s vote when " I he final. pr> 
posals are put tip lor approval 


NHS strikes ‘widely supported’ 


BY OUR LABOUR STAFF 

THE CONFEDERATION of 
Health Service Employees 
(Cohse) yesterday claimed 
widespread support on the first 
day of its campaigruof industrial 
action aimed at increasing the 
Government’s 4 to 6.4 per cent 
pay offer to NHS staff. 

The union estimated that 
between one third and one half 
of its 900 branches obeyed a 
call For selective two-hour 
stoppages and a ban on non- 
emergency admissions. 

Cohse claimed that it had 
received strong support in 


Yorkshire and Humberside. 1 
and that there had been several 
stoppages in the West Midlands 
and Bristol. Some branches had- 
not yet had time to organise 
strikes, but would he taking 
action later Uus week, .the 
union said. 

Today representatives of all 
14 health sen 1 ices unions affi- 
liated to the TUC will meet Mr 
Norman Fowler, the Social Ser- 
vices Secretary, in a final bid 
to persuade him lo allow their 
claim to go to arbitration. 

The unions believe thal their 


case has been 
the announcement last 1 
that an arbitration panel 'bad 
recommended a 5J9 per cent 
rise for civil servants. ’-*• • 

However, . Mr ' -Kenneth 
Clarke, the -Health Minister, 
told the Royal College, of 
Nursing s annual conference: in 
Harrogate yesterday that; - the 
Government had 'made the best 
offer ■ possible ... 

He added that any industrial 
action would do nothing to help 
tht> NHS staff's case and. would 
only harm patient care. ' 


Print union 
fraud case 
settlement 

By Raymond Hughes, 

A HIGH COURT action, in 
whicb Lord Briganshaw, 
former general secretary of 
the print union Natsopa. was 
alleged to have been part of 
a conspiracy to “cheat and 
defraud ” the union, has been 
settled- 

The court will be asked 
today to stay all farther pro- 
ceedings in tbe action by the 
National Society oF Operative 
Printers. Graphical and Media 
Personnel. 

The terms of the agreement 
are unlikely to be disclosed. 

The case began last Wed- 
nesday and had been 
estimated to last about four 
weeks. But yesterday, there 
were out of court negotia- 
tions. and Mr Justice Warner 
was told that agreement had 
been reached in principle, but 
time was needed to complete, 
the terms fn detail. 

The union alleged that 
Lord Briginshaw. its general 
secretary from 1951 to 1975, 
and other former union 
officers distributed among 
themselves £78.000 from the 
proceeds of the sales of 
properties owned by the 
union. 

Lord Briginshaw, Bliss Joan 
Wing, his former personal 
assistant and Natsopa 
administrative officer, and Mr 
Arthur Davis, a former assis- 
tant secretary, denied that 
and other allegations made 
against them. 

They contended that they 
bad acted with the union’s 
authority 

The union’s claim for 
damages was not quantified 
in court but was unofficially 
eietfmated (q be in excess of 
£ 100 , 000 . 


Staff strike 
over BSC 
subsidiary sale 

ALMOST all the employees 
of Redpath Dorman Long, 
the British Steel Corpora- 
tion’s heavy engineering sub- 
sidiary, staged a one-day 
strike yesterday to protest 
against the agreed sale of 
the company to the Trafalgar 
House Group. 

Union officials also visited 
the Office of Fair Trading, 
which is examining claims 
that the takeover would 
create a monopoly 
The nine unions involved 
want time to put together a 
proposal for the employees 
to buy RDL 


Civil Service strikers 
may lose promotion 

BY PHILIP BASSETT. LABOUR CORRESPONDENT’ , 


GOVERNMENT departments, 
are discussing steps tn dis- 
courage civil servants from 
taking industrial action and so 
preventing a repeat of the dam- 
age done by last year's 21-week 
series of pay strikes. 

Policy advisers in Whitehall 
— led by the Department of 
Health and Social Security are 
considering proposals lo re- 
strict promotion prospects of 
senior civil servants taking part 
in industrial action. 

Many senior officials Ignored 
the Council of Civil Service 
Union's strike calls last year 
and their continued wording 
allowed many Government de- 
partments lo maintain some 
level of operations. 

In the Inland Revenue, for 
example, normal working by 
senior staff at the strike-bound 
revenue - collecting computer 
centres at Shipley and Cumber- 
nauld allowed cheques to be 
transported to London, where 
further senior staff processed 


and then banked the cheques. 

The idea this time is to ask 
staff to work normally . or risk 
jeopardising promotion pros- 
pects. Senior staff, on a higher 
grade tend to ftiace morc value 
nn promotion than more mili- 
tant juniors eft ^grades with a 
higher staff 'turnover. 

At present,- promotions are tn 
some extent objectively assessed 
by means of the system of 
annual reporting. Reporting 
forms and procedures do not 
make provision for participation 
in industrial disputes. 

There have already been 
suggestions from the Hayner 
efficiency scrutiny team,' how- 
ever. that the forms should be 
altered to allow for judgments 
on such areas as moneysaving 
ability and others. •- . . 

Whitehall officials confirm the 
proposals being put forward, 
particularly by the DHSS. are 
being considered but that there 
is no decision yet. 


Engineering pay claim 


BY OUR LABOUR CORRESPONDENT 


ENGINEERING WORKERS 
yesterday started shaping the 
industry’s annual pay claim. It 
will cover about 2m workers 
and be presented this year tn 
the Engineering Employers’ 
Federation. 

Tbe national committee of the 
Amalgamated Union of Engin- 
eering Workers, meeting in 
Eastbourne, voted on left-right 
lines lo claim a substantial pay 
increase rather than a fixed 
monetary target figure. 

The resolution is likely, tn be 
the basis of a motion to the 
annual conference in June of 
the Confederation nf Shipbuild- 
ing and Engineering Unions, in 
which the AUEW is dominant. 
The CSEU will press the claim 
on the federation. 

The committee divided on 
political lines. It rejected by 
56 lo 35 a left-wing call for 
£15 a week rises for all skilled 
workers, at present on £83 


national minimum rates, . with 
proportionate increases for 
other erades, to be dated from 
the industry’s national -level 
settlement due in November. . 

Supporting a "motion which 
did noi tie the unitS to a fixed 
target. Mr Terry Duffy, AUEW 
president, said -tbe union would 
look for rises to maintain at 
least the purchasing power of 
members. .... - 

He - reaffirmed the- • union's 
rommimjont- to stand by its 
agreement not to press for any 
improvements in conditions, 
particularly in hours, before 
November next ’year. He 
warned, however. : that next 
year hours would again be the 
prime focus for the claim. 

Negotiations with the federa- 
tion are for miniznu rates only. 
Local: negotiations comprise the 
second stage of the industry’s 
-two-tier bargaining system. 


Halewood strike ends 


ESCORT CAR production was 
resumed yesterday at the Ford 
Car complex at Halewood. on 
North Merseyside, following the 

week-long unofficial strike which 

cost the company 0.7OP 
vehicles, worth £30m at show- 
room prices. 

The 300 men who bad walked 


out in a " who does what" 
dispute held a 30- minute 'mass 
meeting on the site before the 
start of the day shift. Tltiey 
accepted a peace formula 
worked out at top level Joint 
com pa ny^mioh talks in London 
on Friday. 


Shopworkers urge fight for £90 minimum 


BY DAVID GOODHART IN EASTBOURNE 


THE shop workers’ union 
yesterday hacked calls for a 
national campaign to fight for 
a £90 minimum wage and a 
35-hour week. 

Moving the motion at the 
Union of Shop, Distributive and 
Allied Workers’ conference in 
Eastbourne, Mr G. Price, from 
Newcastle, said: ” A national 
campaign involving industrial 
action if necessary must be 
launched to get a decent living 
wage.* The motion also rejected 
incomes policy '‘regardless of 
which party is in power.” 

The politically Centrist union 
—tile seventh largest in the 
TUC with 37,000 members — 
passed a motion demanding ihe 
scrapping of the Youth Opportu- 
nities Programme and con- 
firmed its commitment to with- 
drawal from the EEC. 

Air David Herbert, from 


Greater Manchester,, was also 
backed by the 750 delegate* 
for a motion railing for a 32- 
hour working week. 

Mr Bill Whatley, union 
general-secretary. introduced 

the wages and economic policy 
debate with the news that 
Usdaw wage settlements had 
averaged between 7 and 12 per 
cent last year. There had been 
prepress also towards a 39-hour 
working week. "In tbe- circum- 
stances' that if not a bad 
record." he said. Bui ihe union 
lost about 30,000 members last 
year. 

Mr Whatley said the Govern- 
ment claim' that high wages 
were the cause of unemploy- 
ment had been proved quite 
false. ( 

The conference backed the 
executive statement on wages 
and economic policy which calls 


fori a £90 minimum wage; 
35-hour working week, six wed 
annuat holidays and stands! 
retirement at uo; adult rates i 
IS;, greater accountability i 
companies; .and opposition -1 
Employment Bill. / 

• Mr John Phillips, chairhu 
of the Distributive. Indosti 
Training 1 Board, -yesterdi 
attacked the Governments plfiJ 
to phastsotll 16. of the 23 - 
industrial training boards. I 
was speaking at a hutch givt 
by the DJTB, .which Is' one > 
the hoards due to bo phased 
Mr Phillips, who stressed, rt 
Importance nf the . Irainit 
boards to the. .new .tnWh 
initiative said:. “They. say. tl 
boards will be replaced 1 
voluntary training organisation 
but a voluntary, system, 
volunteers, and we are ; slop 
not getting them," 










?M§1 




; •*&•-•*'*** .1J 


■&&P4 




r*t *•;/» * 


*i*-n 




From the 1st of May most dialled inland galls 
over 56km will cost less. 

Three minute Beak and Standand Rate long- 
distance call charges, 14% or 36% offi 

The charge for a 3-minute call between 
9am and 1pm (the PeakRate period) will fell from 
89p to 74p, while the charge for a 3-minute call 
between 8am and 9am, and 1pm and 6pm (the 
Standard Rate period) will fell from 69p to 59p. 

These reductions don’t apply on the long- 

distance routes that bring us most business, where ^ 

even larger cuts in charges can be made. ^ 


Three minute Cheap Rate Tow Cost Route’ 
call charges, 29% off. 

Our 100 busiest routes have become T.ow 

Cost Routes.’ They link most of the country’s 

business centres, London to Edinburgh, for example, 
Newcastle to Manchester andBristol toBirmingham. 

Between 6pm and 8am on weekdays 
and all weekend (the Cheap Rate period) the 
cost of a 3-minute call on these routes will fell from 

^ While during office hours, the savings will beg 

even more considerable. j 

Three minute Peak and Stamford Rate ; 
T^ow Cost Route?caU charges, 33% or 34% offi 

As Tow Cost Routes’ rend to be busiest 
durin g the working day, this is when the largest cuts 
can be made. The cost of a 3'minute all dtamg 
the Peak Rate period will fell from 89p to 59p, 
while the cost of the same call made during 
the Standard Rate period will fell from 69p to 45p. 

For more information on tariffs and Low 
Cost Routes, dial the operator on 100 and ask for 
Freefone 2013. You can also find details of our ^ 
lower charges in the leaflet Telephone Charges 
dated February 1982. ^g! 




British 

TELECOM 


comes down, 







FALK LANDS CRISIS: COMMONS HINT TO U.S. ON ECONOMIC SANCTIONS ‘TO SHOW WHICH SIDE THEY ARE ON’ Commons Sketch • - 


Thatcher warns that time for peace is running out 


Praise the 


A BltOAD HINT to the U.S. : 
Government to make dear iis 
willingness to impose economic 
sanctions against Argentina was ■ 
given by the Prime Minister in 
rhe Commpns yesterday when , 
she repeatedly emphasised that 
there Is little time left to ; 
achieve, a peaceful settlement [ 
of the Falklands crisis. ; 

Mrs Thatcher gave an assur- •' 
snee that rhe success achieved • 
hy the British task force in re- . 
possessing South Georgia on 
Sunday had not altered the ,' 
Government’s determination tof 
do everything possible to secure j 
the withdrawal of Argentine' 
troops from the Falkland; 
Islands through negotiation .! 
rather than military action. .( 

Mrs Thatcher again paid ' 
tribute to the diplomatic skills'; 
nf Mr Alexander Haig, the U.S. 
Secretary of State. but 1 ? 
suggested that as Mr Nicanor£ 
Costa Mendez, the Argentine'' 
Foreign Minister, was reported ', 
tn be unwilling to continue^ 
negotiations and a- different;! 
approach was needed. "i 

She hinted at the direction '-j 
this ought to take when Sirt? 
Nigel Fisher iCon Surbiton)* 
argued that in view of the ? 
position taken by Mr Costa j 
Mender the time had come to 4 
urge rhe United States to-} 
impose economic sanctions.-! 
against Argentina “if only 10 r'- 
show which side they are on.” 1 “ 

The Prime Minister said she 
"quite understood" Sir Nigel's,'! 
feelings, and agreed that-.: 
economic sanctions imposed by;: 
the United States against ' 1 
Argentina would be of a kind ; : 
and degree greater than any. 
nther country could bring to ■ ■ 
bear. 

She indicated that if Mr.. 
Costa Mendez persisted in his', 
refusal to agree to an early : 
resumption of talks with Mr-* 
Haig shr would expect the 
United States to be in direct - 
contact with the Argentine ' 
junta in Buenos Aires. | 

While joining the Prime ^ 
Minister in praising the remark- : 
able achievement of the British ! 
task force in repossessing South ■ 
Georgia without loss of life, Mr ■ 
Michael Foot, the Opposition ; 
leader, strongly underlined the . 
importance of exploring every 
avenue in search of a settlement 
which would avoid a battle over ; 
iho Falklands. 

Brushing aside the jeers of 
some Tory back benchers he . 
declared: " If one initiative Tails 
I hen another has to be star led." 1 

To cheers from the Lahnur 
benches Mr Foot insisted: "The 
search for peace must never be 
torpedoed by us.’’ 


■ Si 













Michael Foot: search for 
peace 

Challenging the Government's 
apparent reluctance to return 
to ihe UN Security Council, 
which had already condemned 
Argentina's aggression aod 
called for the withdrawal of her 
troops from the islands, the 
Opposiion leader quoted the 
"notable leading article” in 
yesterday's t Monday) Financial 
Times. 

Mr Foot was adamant that 
there must be firm political con- 
trol over tbe operations of the 
task force in the South Atlantic 
so that parliament could be 
assured that there would be no 
dangerous escalation of the 
ensis before the matter was 
brought before the Security 
Council again. 

Regular reports by ministers 
to the House, which he believed 
should be supplemented by 
another debate on Thursday, 
provided the opportunities to 
which MPs were entitled to 
express their own views end 
reflect the ’‘deepening sense of 
anxiety throughout the country." 

Mr Foot unhesitatingly en- 
dorsed Britain's right under the 
UN charier to repossess South 
Georgia, but warned that the 
expulsion of Argentine troops 
from the Falkland Islands 
would involve action on a dif- 
ferent scale. 

To further cheers from 
Labour benches lie cautioned: 
"What is legal is not necessarily 
also prudent:" 

The Prime Minister recog- 
nised the anxiety in the country, 
and said it was shared by the 
Government in searching for a 
diplomatic settlement. • 

With Government supporters 


David Owen: a few more days Sir Nigel Fisher: raised UJS. 

sanctions 

cheering approval she recalled task force approaches the 
that three weeks had passed . Falkland Islands.” 
since the UN Security Council Mrs Thatcher explained that 
called for the withdrawal of with the task force in wSd and 


Argentine troops from the 
islands. 

During that time, far from 
being withdrawn, they had been 
reinforced. 

Blame for the fact that a 
settlement had not yet been 
reached lay at the foot Df the 
Argentine government she 
maintained. 

Mrs Thatcher said the press- 
ing need was to secure 
implementation of the Security 
Council resolution, but she did 
not think there was any disposi- 
tion in New York to involve the 


stormy waiters a wide range of 
military options were not 

available. 

In a sharply critical question 
Mr Tony Benn (Lab, Bristol 
South East) contended that 
while the House and the 
country were united in con- 
demning aggression, public 
opinion, in so far as it could be 
ascertained, wanted a much 
more serious attempt at nego- 
tiation through the United 
Nations. 

He claimed that the majority 


irv V\£w Jhfi . of the British people would not 

follow the Government into a 


with Mr Haig continued. 

Wheu Labour MPs asked how 
she knew this to be the case, 
the Prime Minister answered: 
"I am reporting what I believe 
to be the position at the UN in 
New York." 

Dr David Owen, parliamen- 
tary leader of the Sorial Demo- 


war with Argentina which 
would threaten the Joss of many 
lives, including servicemen and 
the Falkland Islanders, and 
involve the risk of the conflict 
spreading and Britain finding 
herself in an isolated position. 

Tory MPs protested when Mr 
Benn stated: “If the Prune 


crats. accepted the need to give Minigter continues to under-rate 
Mr Haig a few more days. ^ importance of negotiation 
particularly in view of the proceeds with war the res- 
actmties of the Organisation ponsfljiHty for loss of life wiH 
of American States. rest on her shoulders." 

But he insisted that the time Qjj e angry Tory MP shouted:, 
was approaching when if the "Nonsense Absolute rubbish." 

H* r* 1 ' .SJB* "2 The Prime Minister retorted 



-WAR CABINET: His Thatcher and Hr John Nett, Defence Secretary, outside No 10 yesterday 


of American States. 

But he insisted that tbe time 
was approaching when if the 
U.S. was unable to get any 
movement from Argentina, if 


would have to take t the derision 

to apply economic sanctions. government i^Jrai^g negptf- 
The Prime Minister said she ations. 
thought it was right "at the 


Any lack of will was on the 


moment ” to continue to seek a p^of had 


peaceful 
Mr Haig. 


settlement -through 


failed to obey a Security Council 
resolution. To further cheers 


But she stressed : " Time is from the Tory benches Mrs 
getting extremely short as the Thatcher snapped: "In the mean- 


time, perhaps Mr Benn will 
remember that our people are 
under the heel of the Argentine 
invader.” 

A senior Tory hade bencher. 
Sir Derek Walker-Smith, MP for 
Hertford East asked if the 
Argentine troops were with- 
drawn from the Falklands 
Islands the Government in- 
tended to refer the dispute to 
the International Court of 
Justice in accordance with Ihe 
United Nations Charier. ' 


He added: “ If fhere should be 
a drift to war without any 
attempt at arbitration so clearly 
envisaged in the Charter would 
not posterity marvel and might 
it not condemn?” 

The Prime Minister said 
Britain had made a reference to 
the International Court, but 
Argentina had refused to accept 
the jurisdiction of the Court 
It was not Britain’s fault that 
the dispute had not gone to the 
International Court 


In the Lords, Lord George- 
Brown complained that the 
Government was- “still talking 
n»Tnh too easily about the use 
of force to re- take the Falkland 
Islands." 

He called on Baroness Young, 
Leader of the House, to ask Mrs 
Thatcher to “ back off some of 
the statements winch have im- 
paled ns on the hook, in particu- 
lar the question that the 
FalManders* views be -para- 
mount" 


Back bench Tory anger over jobless benefit Labour considers pay beds curb 


BY JOHN HUNT, PARLIAMENTARY CORRESPONDENT 


THE GOVERNMENT last nighl 
faced a rebellion from a group 
of its own backbenchers over 
its abatement of 5 per cent in 
unemployment benefit. 

13 Conservative back- 
benchers voted against the 
Government on fhis issue 
during the debale on the Social 
Security Bill, but failed to 
restore the 5 per cent. 

The back bench dissidents 
announced during the Com- 
mittee Stage of the Finance Bill 
that they would vote for a 
Labour amendment lo restore 
the 5 per cent, which is worth 
£60m in revenue. 

The cut — described by ihe 
Government as “ an abatement ” 
was made on thc^ upraling of 
unemployment benefit in 
November 1980. The proposal 
was that the cut should remain 
at Icasi until November this 
year, when ihe Government 
introduces taxation of the 
benefit. 

Sir Ian Gilmnur I Can 
Chesham and Amcrshaml who 
was sacked from Mrs Thaicher's 


Cabinet last summer, said last 
night that the Government 
should do the rirrht thing and 
uprate the benefits by 5 per 
cent. 

"In any view the Govern- 
ment is making a handsome 
profit out of taxing the unem- 
ployed and therefore it is right 
that they should do what we 
ask." he said. 

He argued that the Govern- 
ment's claim that abatemnet 
vms needed to holster thP public 
sector harrowing requirement 
had now been destroyed. It 
would be " quite indefensible" 
for the Government to continue 
trying to rieFend this po.-hinn. 

He added : "It would he 
irrational meanness nr*r to do 
awawirh this abatement imoi- 
mediately." 

It was " pom monsense and 
minimum Justice" that the move 
to restore the 3 per cent should 
be supported. If the Govern- 
ment failed In do that then he 
would vote against the Govern- 
ment. 

He pointed out that it had 


been clearly understood in 1980 
that the Government would 
restore the 5 per cent cut before 
bringing unemployment benefit 
into tax. 

There is no doubt that this 
abatement was meant to be tem- 
porary and interim" he 
emphasised. “It is common- 
sense and elementary logic that 
the worst off should not be 
douhly penalised." 

Sir Ian received strong sup- 
port from Mr Chris Patten (Con 
Bath) who claimed that the 
Government's defence of its 
nosition had at best been 
“casually inadequate" and at 
worst "plain shifty." 

"What the Government is 
doing is plain wrong." said Mr 
Patten. 

He thought the Government 
had behaved absurdly. Unless 
there was an indication that it 
had changed its mind he wnuld 
be. voting for the Labour 
amendment. 

From the Labour front bench, 
one of the Opposition's 


Treasury spokesman, Mr Robin 
Cook, said the Government was 
showing " a meanness of spirit " 
in rejecting bte amendment 

"The Government's position 
j# one of aheats,’’ declared Mr 
Cook. "It is one that leaves the 
unemployed 5 per cent worse 
off and now proposes to tax 
them on .what t-hef have left” 

According to Mr Cook benefit 
for jobless already stood at its 
lowest level since 1948 ip real 
terms, and was only two-fifths 
of average earnings. 

Mr Bit-hard Needham (Con 
Chippenham) rejected the 
Government’s arguments for 
continuing with abatement. He 
said it was impossible for some 
back benchers to support the 
Government however mnch they 
wanted to at this “ difficult 
rime ” unless there was a 
ministerial change of heart. 

Caustically he told the House: 
“ The Conservative Party has 
never before in its history 
defended a position that those 
who cannot care feu* th<*nseives 
should suffer. 


BY ELINOR GOODMAN. POLITICAL CORRESPONDENT 


PROPOSALS for clamping down 
on private medicine have beat 
drawn up by the Labour Party 
for possible inclusion in the 
party’s .next election manifesto. 

A paper drawn up by the 
party’s Social Policy Committee, 
says a future Labour Govern- 
ment should get rid of pay beds 
in the National Health Service 
and take into public ownership 
those parts of the private sector 
which the NHS could usefully 
operate. 

As a second prong of Its attack 
on private medicine, the docu- 
ment also recommends several 
measures aimed at pricing 
private practice out of existence 
and halting its future develop- 
ment 

The document stops short of 
proposing total abolition of the 
private health sector as some 
sections of the Labour Party 
would like. But if implemented. 
It would result in a drastic 
curtailment of the private 
sector, which since the Conser- 


vatives came to' power has been 
expanding fast 

The proposals have, already 
been approved by-fee sub- 
^committee’ of Labour’s National 
'Executive Committee which is 
responsible for . domestic* policy. ' 
It wiE go before a full meeting 
of the NEC next month as part 
of Labour's programme for 
1982, from which the party’s 
general election manifesto will 
be drawn. 

Tbe committee recommends 
the withdrawal of the “con- 
siderable public subsidies en- 
joyed by way of tax concessions 
on private health insurance, the 
charitable status of certain 
hospitals and access to special- 
ised NHS facilities.” 

■ Future developments of new 
private hospitals should be 
prohibited, it says, and strict 
controls introduced over the 
existing private sector. 

It says that private practice 
should be separated from the 
public sector by removing all 


pay beds from the NHS within 
the first two years erf the next 
Labour government. 

- The document does not: spell 
out on what terms private 
developments would be acquired 
by the NHS but it states that & 
Labour government would " also 
take into the NHS those parts 
of the profit-making private 
sector which can be used to 
meet local needs and reduce 
waiting lists.” 

Feelings about private medi- 
cine run high in the Labour 
Party. Although’ one or two 
unions have their own private 
medical schemes, almost all 
sections of the party are Baited 
in their: distaste for. the ability 
to pay being a determining 
factor in the j provision of 
medical care. 

Ihe paper also says that, the 
main thrust of Labour’s policies 
most include a shaft in empha- 
sis towar-ds promoting health 
care rather than curipgiJI- 
health. 


New Issue 


March 1982 


All the securities having been said, this advertisement appears as a matter of record only. 


Plan to limit revenue loss 
from Civil Service action 

BY PHILLIP BASSETT, LABOUR CORRESPONDENT 


fg: 



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THE GOVERNMENT is taking 
steps to circumvent industrial 
action by computer staff in the 
Civil Service in order to limit 
the disruption of revenue 
collection. 

While it ' acknowledges that 
Value Added Tax cannot be 
collected except by using the 
computer, the Customs and 
Excise department has learnt 
from the 21-week (Evil Service 
pay last year. , 

Sir Douglas Lovelock. Customs 
and Excise chairman, told the 
all-party Public Accounts Com- 
mittee yesterday that the 
department was pursuing the 
idea of direct credit transfer 
by VAT traders. He said that 
during last year’s strike the 
department tried to get the 
largest 50,000 companies, which 
paid 90 per cent of all VAT, to 
use credit transfer. 

The Inland Revenue has 
written to 70,000 of the largest 
employers to ask them to use 
the Post Office giro system for 
.their Pay As You Earn tax pay- 
ments rather than the Revenue's 
computers, which ■ were halted 
during the strike. . 

Sir Lawrence Airey, chairman 


of the Board of the Tnlanrf ' 
Revenue, said that the Govern- 
ment had not. considered.. an 
interest penalty for unpaid tax 
to speed-up payments-: 

The departments presentedto 
the committee a. review' of the 
financial effects of the strike, 
estimated by the Treasury to 
have: cost £500m in .interest pay- 
ments on money borrowed to 
cover unpaid taxes. . 

About . £570m — about 1 6 ' per- 
cent of all VAT— 4s still unpaid 
as a result .of the strike. At one 
stage some -588,000; . cheques, 
were held up. The amount 
delayed rose from £250m at the 
beginning' of the strike to a 
peak in October of £2.73bn. 

The department "held up 
about £4-3bu in repayment 'to. 
traders during the strike. To 
deal with this backlog cost some 
£500,000 in overtime payments. 
About £900,000 to £lm was' 
saved in unpaid wages during 
the strike.' 

The Inland Revenue said that' 
about £5.1bn -in tax and 
National Insurance contri- 
butions were held- up by .fce 
strike. 


pass the £ 
mmunition 

WIFE THE recapture ■aflSfcffii'V - 
Georgia - out of the wasvusje ' 
ebullient Government -official ' “ 
war quoted as .-saying? that;';.. 
.. there was “ a stwmg-woKr / ; 

• * cordite ” drifting through, ffie : .. 

corridors Wmtehalt'y^rtffly -,. 
day: . • r r’.' : ; ~ -Vv.v V-*"i 

If this was the case.tfae breege , 

. did not carts: much, of i£ovdp ;\ 
•tto the Hottse : nf '(Siiminbns^ ? 

• where Mrs -Thatcfier ; : ; «ae a 

. making -a' statmntof.; '>j %f . 
A cheer went up ftmn'tfc&Tbsy' : ' 
bench esas the PiteteM&teter---: 

.. entered ihe <hambe^WJth ( :ifc- . - 
John Nott, the DrimuaSeme-: ' 

- .tary, whose excructetih^per-r y- 
- - formance in .the .HoteMi-'|a*ee: ; - 

• ‘weeks ago now saeratb’.he-* ' 

a distant episode . qfi pro- ■- 
history. ‘ r 

u Rejoice! Itejoice? "Laboorj^ '• 
cried ironically, in reference ' 

to Maggie's excitable perfbnxW' . 
anca outride No' 3.0: when -the 
success of the South Georgia.; . 
operation was announced on 
Sunday night. * 

“We are, we are!” cried Tory 
MPs* in unison. .. . . V ”!. . " 
To be more precise? some of; 
them were Others displayed- 
strong caution, over the^-pate';'' 
of" events * as Mrs Thatcher' . 
harped oh the need for a 
speed-up in negotiatiras as ' 
the - main J . task . force : 
approaches the -Falklands. ^ 
"Trane is getting- extremely.-. 

short,”' she Yarned, “.(hie: : 

. cannot jnst have a wide range : 1 . 

: of choice of military options' , 
with the. task force w fbe ., 
wild and- ; stormy .weather ia 
that area.” • - . . 

Patriot V . 

Theift was still a touch of 
Midtael Foot- super-patriot. as 
the Leader of the Opposition 
closely questioned the Prime 
, Minister. Bat he was treading 
more' vtarQy than in a«y df . 
the exchanges the 'crisis 
over the past few we^s. 
Obviously a . bit worried by the 
Prime Minis terS ctemeanouv, 
be backed the ' operation on 
South Georgia 1^-asfebiLfQr-: 
undertakings tiiat there- would 
be no escalation Of 4he Crisis, 
and that firm political control 
would be maintained . over 
military operations, -/-. . v 
Some of the Tory^fire ■ eaters 
jeered when Iter stressed Ihe 
• United Natipn&T perspective 
anil the need ito negotiate^-; 

“ if one initiative' fails then 
another has to "be started. ” . 
•Not -unexpectedly, he ended: 
wife a call for a strong apph- 
■cation.of -Jto -Foot's universal, 

••• -panaeea for^'dll political;- 
economic, and social ills r— a 
debate in the House .of . 
Commons: :, V; 

There was also some significance 
In what “he failed to sxj£F° r . 
one tiring, he did not adk Mrs 
Thatcher to call in party v ; 
leaders for round table -talks 
at Number .10. 

In years gone by that was a cry- ■ 
always on. Labour lips during 
times of crisis. - . ' 

There is good reason for the-.. 

• present coolness towards, this,' 

idea. : 

Apparently, Mr. Foot. recoils at 
the idea of allowing the 
Liberal and Social Democrat 
Alliance to have its new.' 
status recognised "by -being.: 
consulted on - such -grave-;- 
matters of state. 

The real wrath of the Tories was 
. reserved for Mr Tony Benn, 
who warned 'that public 
opinion favoured a more . , . 
. serious attempt to settle mat-.' 

- . ters through the-UN, and that 
=. if Mrs Thatcher ^underrated 
negotiations '.'anti" proceeded 
: with war “ the responsibility ‘ 

. for the loss of life”: would 
rest on her shoulders. ; 

Rhetoric : - v 

-But knock out some , of ’ fee 
stronger rhetoric in -M r 
Bean’s mtervehtioiavaBd his 
'■ ling oh tills occasion did not 
seem to be all that differ^ 
from Mr Foot's: -y., \ 

Many MPs must have reflected . 
that it was a rum old business 
as they trooped from the 
Chamber 'having heard an 
assurance from Mrs Thatcher 

that despite the weekend 
1 .hostilities TSrtfcain was not in 
: a state of war wife Argentina 
and that Argentine service- 
men captured on South 1 . 

: Georgia -were not prisoners of 
war. . • 

The Speaker, Mr George'.: 
■Thomas, then listened to a' 1 ’- 
tangled row between Mr Alex - 
Lyon ' (Lab, York) ' and Mir- : / 
Fergus Montgomery : (Con,:.: 
Altrincham and Sale). It cca-V 
cerscd. what Mr Montgomery _ 
■bad -or had norsaidjisf waafc V- 

■ about Mr Lyon’s attitwe. ■ 
towards community poUtiag- £ : 

-1, .suggest .. the.-^ ^ honourable^: 
members should - settle this" 
between themselves In 
. tearoom,” -"-observed- 
Speaker "wearily. ■ : : • 

If only. all conflicts were • str 

■ easily remedied. ' :■ 

John Hunt 

Shops Bfll will go . V - ' 
to Commons 


isration forecast 


THE FLOW of dependents of 
first-generation . immigrants 
from the Indian sub-continent 
to the UK is likely to. continue 
into the 1990s, Mr Timo thy 
Raison, Minister of State at the 
Home Office, said yesterday. 

But Mr Raison told the Home 


Affairs sub-committee on race 
relations and immigration that 
fee situation In fee future de- 
pended on whether or not those 
bora in the UK looked to fee 
Indian - subcontinent for 
Spouses.-'- • : - 



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AN ATTEMPT to Mft ;peStififoV ' 
ttonsonsbop openiiig hours--s^B : - - 
now be serutfeised :byv^e r ' • 
Commons. - J'. ; . - 

Lady Tramplngtos’s • Shops - -- *" 
Bill received a Third Readfogifo ; : . 
the Lords yesterday, amM pro- 
tests from Opporition peere.- ^'. ' : 

They appealed to fee-Goyfife-'-'. ^. v 
ment to set up an mdeperident: -r ' 
inquiry, consulting people 
voJved, into the impiicatioB^-fl’fr -r-AJU- 
filhdps being allowed 
wheatiJej wahted.^ r -] 

















Financial Times Tuesday April 27 1982 


11 


TECHNOLOGY 


EDITED BY ALAN CANE 


Power for process engineers 


BY GEOFFREY CHARLISH 

* 7N THE latest process control caa be removed, or a new one 
system from Brown Boveri inserted and reconfigured into 
Kent, distributed digital pro- the total system on line: the 
cessing and high level colour process plant carries on apart 
display techniques have put yet from the areas being changed, 
more control power at the dis- Vital to efficient utilisation of 
posal Of the process engineer the DTS is Kent's “significant 
and operator alike — and at change ” approach: instead of 
higher reliability. data being transmitted from 

Known as the P4D00 Dis- each source continuously, talcing 
tritroied System, the new offer- up highway capacity, it is sent 
mg is from Kent Process 
Control, Hitchin, Herts, and is 
aimed at medium to large scale 
processing in the oil, cheaiical. 
minerals, metals, paper, glass 
and similar continuous produc- 
tion and bulk batch production 
industries. 

On the plant side it uses a 
number of intelligent autono- 
mous process units that are 
controlling; The flows, tempera- 
tures. pressures and - other 
variables while “ management ” 
units in the control room allow 
plant executives and operators 
to see what is going on via key- 
boards. colour screens and 
primers. Up to 4.000 plant 
items can be controlled. 

Highways 

“ Distributed intelligence ” 
technique, which in recent 
years has been supplanting the 
big central control computer — 
failure of which could shut 
down the plant and duplication 
of which was expensive — has 
now been, pushed further for- 
ward by Kent. 

For example, all the units are 
connected together nor over the 
single, now familiar, data high- 
way or “ bus,” but over several 


only when it changes beyond 
a pre-detenn in ed amount. 
Unnecessary traffic is thereby 
minim is etL 

Kent describes its transmis- 
sion system as "democratic" 
since all units needing trans- 
mission access have an equal 
opportunity based on a ■* baton 
passing” principle. 

A unit that bas access to the 
highway at some moment sends 
its message, waits for acknow- 
ledgement from all the others 
and then hands over access 
<“ passes the baton ") to its 
neighbour. 

Messages can be addressed, 
point to point, or broadcast. All 
of the four highways are used 
at once and no single element 
of P4000DS can cause total 
system failure. 

Each of the management 
units — displays and loggers — 
can have immediate access to 
all the pkmt variable data 
through its own. local database, 
acting as a collector of the 
significant change data. Also, 
the point-to-point mode ensures 
fast response to alarms and 
operator requests. 

The operational, visual nerve 
centre of the P4000Ds is the 
such highway’s, each of which system display device. SDD. 
can take a different route Over the years these visual 
through the plant site. If one systems have been, developed by 


cable is damaged, the other can 
Lake over. 

Kent calls its highway a data 
transport system or DTS. On 
the management side, typically, 
would be connected one or 
more system display devices 
iSDS) with colour presentation, 
data logger with printer and 
perhaps a process computer for 
plant modelring and for “what 
if" exercises. 

On the plant side are con- 
nected the units that obtain 
data from and control the plant 
itself. 

Any of these devices can be 
connected at any point in each 
of the four highways and each 
highway can be up to 5 km 
long. Furthermore, any device 


JOINT COMPANY ANNOUNCEMENT 

EASTERN GOLD HOLDINGS LIMITED 
WESTERN HOLDINGS LIMITED 

( Both o/ which ore incorporated in the 
Republic of South Africa ) 

CURTAILMENT OF CAPITAL EXPENDITURE 

In view of the continuing low gold price and the current 
short-term outlook, it has become necessary to curtail the 
capital expenditure in the Western Holdings complex and in 
the Ei-fdeel division in particular. 

Besides deferring projects at the three operational divisions 
of Western Holdings it lias been decided to delay The start 
of the Erfdeel No. 1 main shaft sink by at least six months 
and that no new commitments will be made until after !he 
end of the financial year. The sinking of the No. 1 ventilation 
shaft and certain peripheral projects already underway will 
continue. 

The situation is being reviewed on an on-going basis and a 
further full reassessment of the project will be made m 
September 3082 based on the outlook for gold at that time. 

Johannesburg 
April 27, 19S2 


guiu rti uiai uui& 

SMsi 


Iuwr,inpeace i 50B need his help 


IS 


Adonatwn,acOTenarit,afegacytD 

THE ARMY BENEVOLENT FOND 


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Stockmarket investment 

This week’s fC News Letter looks at: 


What warrants are and picks out the ones to 
buy and the ones to avoid- 

For lius. pill- wgnlir coverage 01 p™ a-enmnwndations and a hostof 
oftierirvcm) mvolmem up- and ideas, Mibacribe 10 ibe ICNcws, L ater 

-Ijrmig wilhtheihMH; .ibfvc. _____ _ _____ ___ 

Tb: MarkilingDcpt - 1 C News Letter, FREEPOST, London EC4B4QJ 
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I would lik c- to take out an annual Mjbsajption to IbeICNews Letter 
bcciitnmi' u 11 tithe Warrant i^uc no. 1 S3 5 at: 

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Date 

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Rc put, .a aaarP-MMracU-nHoni'c.CaMKm Si.,LomkinECJP<BY.RcfcNiv-GGOS% 


THE FINANCIAL TIMES BUSINESS PUBLISHING LIMITED. 


Cc 


n n 


SI ® 

1 

Systems 

DspAv 

Dana* 

zut “ 


fogs* 


Process ‘■■’i 
^Computer'.'': 

if- 


Data Transport System 


I na tr uiu act 
‘ Pro 


IE 


Control 

Processor 

Unit 

-mirrr 


C untmu o u s' 

. Control ~ 

-Pioc*aaor-, 

Una 

— nun i - 



Local Display 
- - Device : 


the industry to the point at 
which virtually any information 
the user might require from the 
plant can be conjured up on the 
screen. 

Listings, mimic diagrams, 
baragraphs, trend curves — and 
in Kent’s latest offering, com- 
posites of all of them at once — 
can. be brought up within two or 
three seconds in colours to suit 
the Idea of the user. 

The object is to give the 
operators fast access to any 
plant data, so that operating 
decisions can be implemented 
quickly and efficiently. 

In the Kent approach, which 
has called for considerable soft- 
ware effort, the screen is 
divided into functional areas. 


A narrow strip down the right 
hand side is an overview area 
and is always on the screen; 
about 30 names of control 
groups can be listed and if an 
alarm occurs within a group, its 
name is “ alarmed ” with a red 
blinking marker and inuoaedi- - 
ately appears as an " action ” 
line of data at the botom of 
the screen, where it remains 
until the operator does some- 
thing about it. 

Immediately, tbe ' operator 
can fill the screen with data 
about tbe troubled area, homing 
in on the problem. 

Along the very bottom of the 
screen is a line of rectangular 
labels that align with “soft" 
buttons immediately below on 
the keyboard. 

The burtons have whatever 
meaning the tables give them, 
changing to suit tbe immediate 
situation. In this way the 
operator is helped through the 
necessary sequences, being 
given only suitable courses of 
actioa 

Most of the display however, 
is given over to a choice of bar 
graphs, alphanumeric detail, 
mimic or trend displays. 


A typical single line of a 
bargraph display for example, 
shows measured value and set 
point for a particular variable 
with yellow segments at the 
two ends denoting alarm zones. 
The same data is shown simul- 
taneously, on the same line, 
with alphanum erics. 

All kinds of mimic diagram 
can be produced, designed by 
the - riant engineer using a 
special engineer’s keyboard. 
This is probably the most 
dramatic facility since up to 63 
items — valves. pumps, tanks, 
pipes, vertical band instrument 
displays “mini-trend” curves can 
appear on the screen at the 
same time. Some of them can 
even be animated: tanks for 
example can be seen filling up. 

Trends of the plant variables, 
either very recent, or historical, 
can be built up, respectively 
from real time devices or out 
of the data logger's disc stores. 

So far Kent has clocked up 
£15m of sales for the whole of 
the P4000 range since the 1979 
introduction. For the latest 
distributed system, it already 
has an order from Blue Circle 
Cement 


Tenacity for film and industry 


FOR TWO WEEKS last month, 
a loiai of 250 people in London 
displayed an unrivalled dedica- 
tion to industry and to film. As 
delegates to the London pre- 
selection screenings of the 21st 
British Industrial Film Festival, 
a measure of their tenacity is 
indicated by the 225 pro- 
grammes screened during the 
fortnight. 

An appreciation of the extent 
of their dedication can be 
gleaned by flicking through the 
programme — 27 minutes on 
fighting cancer, 33 minutes on 
tbe bistory . of the Britannia 
Bridge, 3l> minutes on Mrs 
Thatcher opening the ’new head- 
quarters of AGB Conference 
Services. 

.In fairness, it is not quite 
so intimidating as it sounds, 
and even some of the very long 
films can. be quite absorbing — 
such as the 27-minute Foreign 
and Commonwealth Office pro- 
duction, Seeing b?i Numbers, 
which is a compelling survey 
of how computers help in busi- 
ness. education and design. 

Nonetheless, as a close 
observer of industrial films for 
more than 20 years. I have to 
report that the scene has 
changed significantly — mostly in 
a downward direction. Quantita- 
tively, tbe decline is charted by 
the number of film entries — 
which peaked at 210 in 1075 
after remaining around 200 
duriDg the 1970s. but has since 
dropped to 109 in 1981 and 159 
this year. Videotape entries on 
tbe other hand are climbing — 
28 in 19S1. 66 this year. 

Such a trend was almost in- 
evitable. More interesting, how- 
ever, is an analysis of entries 
into the various categories. Tak- 
ing video and film entries col- 
lectively and comparing them 
with 1972 entries, there, is little 
change in percentage breakdown 
of subjects — whereas in some 
areas it would be reasonable to 
expect a noticeable shift over 
the decade. ' 



BY JOHN CH1TTOCK 

For example, programmes on 
training represented about 20 
per cent of all entries — hardly 
a dramatic swing in attention 
to our labour problems against 
the 17 per cent a decade ago. 
And in the caring society, 
safety and welfare subjects at 
7 per cent of the 1982 total show 
a disturbing drop from the 16 
per cent ten years ago. Likewise 
in these competitive limes, sales 
programmes — 12 per cent this 
year against 20 per cent in 1972 
a year in which sales entries 
led the field 1. 

Does This mean that British 
industry is becoming less con- 
cerned about safety, training 
and selling? Or merely that 
programes on these subjects 
are considered — in 18S2 — less 
worthy of entry into (he annual 
festival? Tbe latter point would 
be no more acceptable than the 
former,- but some explanation 
seems necessary. 

z Distortion 

Probably both explanations 
hold some validity, especially 
when comparing the figures 
with entries for the Second 
International Video Festival, 
which takes place in London 
next month during International 
Video Week. Alihough the 
video festival categories are 
fewer in number and come from 
all over the world — making 
direct comparison with the 
British festival difficult— -wil- 
ing programmes again represent 
only 13 per cent and safety- 
only 4 per cent. But training 
leads the field with 21 per cent. 
Probably w-hat is happening. 


and not peculiar to Britain, is 
a distortion caused by the 
arrival of video. In training, 
for example, the new medium 
has many attractions (not all 
desirable ones'* to the training 
officer — which has encouraged 
a desertion from the apparently 
expensive training film to the 
deceptively inexpensive video 

programme. The dramatic 
industrial spread of video may 
also account for the relatively 
high 17 per cent of video 
festival entries in the cate- 
gories on interna) communica- 
tions and company magazines. 

Employee communication is 
keeping the video industry 
busy, especially' as large cmn- 
panic? throughout the Western 
u-orlj are installing their own 
video networks. Which, in 
turn, ought to be a palliative 
for that declining interest in 
selling programmes, so why the 
lack of inlerest? 

The dying species of the sales 
film owes its death pangs more 
to the arrival of video than to 
a slacken in? concern for 
marketing. Where once film 
\va> used by salesmen in S mm 
desk lop projectors, or at hotel 
gatherings with hospitably 
thrown in. the declining 
inierest in film has diminished 
thcNO applications and has nor 
been compensated by a rising 
u>e of video as a sales medium. 

There has been no compensa- 
tion because, at present, desk 
top. portable video machines do 
not exist: and the medium is not 
suitable for screenings to large 
gatherings. So. whereas in 
other -festival categories the 
arrival of video has tended to 
balance out the drop in film 
entries, it has not with selling. 

Nonetheless, as all of those 
company video networks start 
to spread, enterprising salesmen 
should be thinking more 
seriously about the use of 
video-cassettes as a selling tool. 



4 Mantis award in subsea world of flying eyeballs 


THE SILENT world beneath 
the waves around offshore oil 
platforms is inhabited by 
flying eyeballs and submer- 
sibles as well as the more 

USUal mafiim life. • 

It has been the ability of 
OSEL, a small British 
engineering concent, to 
develop such equipment for 
use in repair and maintenance 
of offshore production wells 
that has resulted in its Queens 
award for technology. 

OSEL gained its technology 
award on the basis ot its very 
successful one manned sub- 
mersible. the Mantis, in 
which the operator breathes 
air at a pressure of one 


atmosphere in depths of 
around 1,000 ft 

Next month, the company 
unveils a new version of the 
Mantis, called the Ouplus. 
which will allow either 
manned or unmanned 
operation. 

The system incorporates a 
microprocessor control which 
can be used on deck to 
control the submersible and 
was discussed on this page 
on April 6. 

Though the technology is 
dominated by North American 
companies, OSEL has gained 
a significant hold in the 
market for manned sub- 
mersibles. In the- North Sea 


alone it has six machines 
operating in the Norwegian 
sector. 

Mr Doug Hampson, chair- 
man of the OSEL group, said 
that the company sold more, 
one man submersibles than 
anyone else in the world last 
-year.- 

There are too- many com.-' 
ponies competing In, the sub- . 
mersibles market -. . Mr 
Hampson believes, but the 
need for either • manned or. 
unmanned underwater 

vehicles is likely to increase 
as .offshore - oO- production 
moves into deeper water. 

It is believed that couven- " 
tional saturation diving tech- 


niques are already reaching 
their practical limit at depths 
of about LOGO ft. 

Apart from the dangers of 
working under pressure at 
sueh depths, divers face long 
term problems with diseases 
such as hone narcrosis. It 
also takes a long time to pres- 
surise divers whereas a sub- 
mersible gets to the spot very 
quickly. 

However. Mr Hampson 
believes that the company 
cannot stand still as regards 
technology. It is already 
.well advanced with a new 
one-man submersible called 
the Hawk which looks rather 
like an underwater helicopter. 


It has a large acrylic dome 
which gives the operator good 
all-round vision and uses a 
new garage concept— which 
enables the craft to move 
around on the seabed without 
having to drag along 
thousands of feet of nmbilical 
cable — which provides the 
power and air — ns most 
operating machines do today. 

It Is this machine which 
Mr Hampson believed could 
be developed to eventually 
reach depths of about 20,000 ft 
although he will nerd extra 
external finance of around 
£lm to realise that dream. 

ELAINE WILLIAMS 


It is. for example, o. safe 
assumption that every irainins 
officer in the country now has 
a videocassetie player available: 
and soon most bank managers, 
ch ie f execu Lives, sch ool i each ers 
and large estate agents: all 
potential customers for someone 
using video as a selling medium. 

Why. however, that slump in 
safety and welfare? One pos- 
sible explanation is that — a.? 
Cinderella subjects — where once 
film was used, very cheap and 
functional vifleotapes arc now- 
being made; so cheap and so 
functional that they are just not 
good enough to enter for 
festivals. 

If this, is so. it is an alarming 
trend. Good safety practice 
depends, initially, on the right 
attitude ol mind — first recognis- 
ing that dangers exist, then 
always taking the l rouble to 
follow proper safety procedures. 

Poorly made, amateur, do-it- 
yourself safety programmes are 
likely to reach such creative 
heights and they become a poor 
substitute for the most impor- 
tant emu nmnic.it inn* medium 
society has ever known 

Xcvcct lie less, the trend will 
continue ax video spreads and 
the uiakintc of do-it-yourself 
programmes seems to lx* as easy 
as "pointing the camera and 
pressing a button. Any fool can 
make a video programme— and 
a great many du. 

“ The media industry must 
learn to live with the problem 
— it won't go away- — and try nt 
least to educate the user?. We 
on the brink of a cultural revo- 
lution. where for ihe first rime 
moving pictures are as avail- 
able to everyone as words have 
been for two millcnia. Marshall 
MeLuhan was not altogether 
right — the medium is as import- 
ant as the message, because if 
it is not used with fluency the 
message will be wasted or mis- 
understood. 



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ijtff&fgpto 




ft commercial law reports 


Leave to appeal from judge on arbitration point 

BABANAFT INTERNATIONAL CO SA v AVAJJT PETROLEUM INC 
Court of Appeal (Lord Justice Stephenson, Lord Justice* Donaldson and Sir David Cairns): April 7 1982 


gEAVE TO appeal from a 
Court Judge’s determina- 
tion of a preliminary point of 
law raised in arbitration pro- 
ceedings Mill only be granted 
*>y the Court of Appeal in 
exceptional circumstances, un- 
less it is apparent to the 
court on perusal of the judg- 
ment and without adverslal 
argument that the Judge was 
obviously wrong* 

The Court of Appeal so beW, 
when refusing an application by 
Babanaft International Company 
&A, disponent owners of the 
Oltenia, for leave to appeal from 
Mr Justice Bingham's determina- 
tion of a preliminary point oi 
law raised dn the course of 
arbitration proceedings in a 
claim by the owners against 
Avant Petroleum Inc, charterers. 

The court dismissed an appeal 
by the owners from Mr Justice 
Bingham's refusal to grant them 
an extension of time in which to 
present their claim and support- 
ing documents. 

Section 2 of the Arbitration 
Act 1979 as amended by the 
Supreme Court Act 1981 pro- 
vides; *'(1) ... on an application 
to toe High Court made by any 
of the parties to a reference (to 
arbitration] ... the High Court 
shall have jurisdiction to deter- 
mine any question of law arising 
in the course of the reference 
- (3) ... no appeal shall tie 


RACING 

BY DOMINIC WIGAN 


ONE OF the busiest mid-week 
programmes in a long time is 
scheduled for today. Flat- 
rating enthusiasts will be 
served by Nottingham, Beth 
and THrsk. Those preferring 
the jumping-game have meet- 
ings at Ascot and Perth. 

Flat rating offers almost in- 
variably the richest spoils. By 
far the most valuable races 
today, however, are at Ascot. 
There, the £10,000-added 
Pearce Duff Novices Chase is 
sandwiched between extremely 
good purses for the Royal Fern 
Novices Chase and the Alpine 
Meadow Handicap Hurdle. 

There, however, the backer 
has a tricky time ahead of him, 
to say -the least. Although the 
racing is of a. high calibre 
punters will do better to con- 
centrate bets on Bath and 
Nottingham. 

For the best value at the 
West Country track Sky High 
Guy, among runners for the 
sixth race on the card, division 
one of the Rlathwayt Maiden 


from such a decision unless — (a) 
the High Court or the Court of 
Appeal gives leave . . . " 

Section 27 of the Arbitration 
Act 1950 provides: “Where tire 
terms of an agreement . . . 
provide that any claims . . . shall 
bo barred unless notice to 
appoint an arbitrator *3 given or 
an arbitrator is appointed or 

some other step to commence 

oribtratioQ proceedings is taken 
within a time fixed by Cte agree- 
ment the High Court may 

. . . extend the time. ...” 

ir k "fr 
LORD JUSTICE DONALDSON 
said that the owners hired the 
Oltenia to the charterers for a 
voyage from the Black Sea to the 
Mediterranean. The charter- 
party was on a standard form.' but 
included a “ one-off ” clause, 
clause M - 2. That provided that 
the charterer^ should be dis- 
charged from liability to the 
owners in any claim under the 
charter, unless the claim was pre- 
sented to the charterers “ in wilt- 
ing with all available supporting 
documents within 90 days from 
completion of discharge of the 
cargo." 

■file Otteuia completed dis- 
charge at Algeciras on December 
16 1980. On December 30 the 
owners presented a claim to the 
charterers for damages for deten- 
tion of the vessel at Augusta. 

The 90-day period mentioned 
in clause M2 expired on March 


Stakes, is worth a long wash 
Sky High Guy raced once as a 
juvenile. He showed there is 
a modest event in store for 
him, such as today's mile 
maiden, when chasing home 
the far more forward Free 
Press in a similar event over 
10 furlongs at Nottingham 
three weeks ago. 

Always up with the pace 
there, James Bethell's good- 
looking colt seemed like mak- 
ing a close race of it until 
Kingsdere's Free Press, a 
half-brother to five winners, 
went on at the distance. Unless 
Sky High Guy is extremely 
unfortunate he will not find 
a rival of that winner's ability 

this time. 

ASCOT 

2.00 — Kintbury 

2.30— -Cobblers Castle 

BATH 

4^0— Sky High GoT *• 

5.00 — Perease** 

THERSK 

2.45 — Escart Bay 

3.15— Cumulus* 

4.45 — Godstruth 

NOTTINGHAM 

4.00— Bright Wire 

■L30— The Dice Man 


16 198L On March 17 the 
owners Issued a writ in respect 
of tbe claim, and in respect of 
an additional claim. The claims 
were referred to arbitration. 

The owners applied with the 
charterers’ consent to the High 
Court under section 2(1) (b) of 
the Arbitration Act 1979, for a 
determination or a preliminary 
point of law. They also applied 
under section 27 of the Arbitra- 
tion Act 1950 for an extension 
of time in which to present the 
claims and all available support- 
ing documents. 

(l) Application vender section 
2(1 Xb ) jar determination of a 

preliminary point of law 

The preliminary point of law 

was whether the claims were 
tunebasired- Mr Justice Bingham 
held that the additional claim 
and its supporting documents 
were not .presented within 90 
days, and were therefore time- 
barred under clause M 2. 

The original claim had been, 
presented with much supporting 
documentation. The only omis- 
sion was documentation support- 
ing disbursements of 851,000 in 
two ports. Those disbursements 
were only one ingredient in the 
owners 1 calculations, but the 
sum was not trivial, and Mr Jus- 
tice Bingham held that if they 
were available they should have 
been produced. Whether they 
were available was a question of 
fact for the arbitrators.. 

■k 

The owners now applied under 
section 2(3) of the 1979 Act for 
| leave to appeal from that ded- 
1 sion. In the ZVepia (1981 J 3 WLH 
292 Lord Diplock said at page 
303, with regard to the granting 
1 of leave to appeal to the High 
Court from an arbitrator, that 
leave would not normally be 
given where the question was one 
of construction of a “one-off" 
clause. Normally it would only 
be given where it was apparent 
to the judge “upon a mere 
perusal of the award, without 
the benefit of adversarial argu- 
ment,” that the meaning ascribed 
to the clause by the arbitrator 
was obviously wrong. 

If a similar approach were 
adopted by the Court of Appeal 
in considering whether to grant 
leave* to appeal from a High 
Court decision, it would be in- 
appropriate to allow the type of 
prolonged adversarial argument 
which was usually deployed 
where the application might be 
followed Immediately by the 
hearing of the appeal. It would 
rather be for the court to read 
the judgment sought to be 
appealed, and to ask itself simi- 
lar questions to those which 
should be asked by High Court 
judges, under the House of Lords 
ruling in the Nema. 

Section 2 was the successor in 


title to the old consultative case, 
which aptly described its nature. 
It was essentially a speedy pro- 
cedure designed to interrupt the 
arbitration to (he minimum pos- 
sible extent add was an excep- 
tion to the general rate that the 
courts did not- intervene in the 
course of an. arbitration. 

If, other then in wholly excep- 
tional cases, it were used to 
obtain definitive decisions from 
the Court of Appeal or the House 
of Lords, it would create un- 
acceptable interruptions in tire 
conduct of arbitrations. Excep- 
tional cases arose where the 
preliminary question of law 
determined the whole dispute 
between the parties. There 
m ight be other exceptional cases. 
<k 

In the present ease the court 
had read the judgment of Mr 
Justice Bi n^ ha nf* <®. the construc- 
tion of clause M 2 before hearing 
the application. It was a “one- 
off” clause. Du a perusal of the 
clause m ud (he judgment it was 
far from apparent that his deci- 
sion was obviously wrong. On 
the contrary, it bore every indic- 
ation of being right Mr Yocfce 
for the owners was therefore not 
allowed to argue the merits of 
the appeal. 

The application for leave to 
appeal on the predimta&ry point 
of law should be refused* 

(2) Extension ’of time under 
section 27 

Granting leave to appeal from 
Mr Justice Bingham's refusal to 
extend time for presenting the 
claim and supporting documents, 
bis Lordship said that in order 
to establish the courts jurisdic- 
tion to make an order under 
section 27, the owners had to 
show that clause M 2, or the 
charter-party as a whole, pro- 
vided that claims would be time- 
bared unless some step to com- 
mence arbitration proceeding 
was taken within a time fixed 
by the agreement 

The owners’ difficulties were 
obvious. Clause M 2 had no 
apparent connection with the 
commencement of arbitration 
proceedings with 60 days, or any 
other time. It appeared to relate 
solely to making a claim in a par- 
ticular form within a fixed 
period. 

The appeal should ’ be 
dismissed. 

Lord Justice Stephenson and 
Sir David Cairns agreed. 

For the owners: Richard Yorhe 
QC and Richard Aikens (Thomas 
Cooper and Stibbard). 

For the charterers: David John- 
son QC and Timothy Dutton 
(Coward Chance ). 

By Rachel Davies 

Barrister 


| BBC T | 

W^ ravy T*q7y 

ggisESjESSSS 

i.-aI tl-inflS. 


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5.40 News. 

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625 Nationwide. 

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LONDON 




A jolly good-night: for playing : ScntbbIc, bathingthe (tog, 
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salt water wap opera TriangJeandits rament wrote swpopjer* 
Flesh and Btood.jdn^ ancdie'r of its WjpcpteJy jfcee- 

whiz childrens’ sc imte tfoounentarfes QSV and another or in 
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However it does sound worth switching on to 
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11.00-1125 Play School. 

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6.00 Fancy Fish. 

625 News Summary. 

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GRANADA 

120 fan Granada Reports. 120 
Exchange Rags. 2 jOO Crown Court: 
220 Home Front. 3^6 Looks FamtKhr. 

6.15 Happv Osya. 620 Thii Is Your 
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1220 pm Pater Along with Naoey. 
120 MTV News. 3.4S Looks Familiar. 
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To Succeed is Bu s i n e s s 
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9.00 Roy dark Travelling 
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9AS Nothing Final. . 

1025 cameo. . 

1045-1125 Newaught . 


HTV Cymru/Wa l ae — A s HTV West 
except: 326-950 am Mwy . Nn Ui. 
T1 29-1124 Yn En Cynefin. Tl .65 Car- 
toons. 1220-12.10 pm Cel Cocos. 4.15- 
ME Ar El Ot 6.00 . Y Dydd. 6.T5-. 
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SCOTTISH 

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tsw ' 

1220 pm Msrifyn Baker— Sanpwnwr. 
120 TSW News HeedUnes. 32S Wei- 
come Beck Kottsr. 5.15 €us Honey- 
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r 120 pm TVS Nines. 3-46 Looks 
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WWW. MffNews, plui FT 
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After N<xto, PtaK ‘pretwHrr 
Mot w 
Lill, one of Britain's most sue- 
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My Fdtber’s House. W5 Nome 
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4J29 On S*Uri- . 4*45 CB TV—* 
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News. " "• • 

• ALSO Thames News . 
MS Help! vrih Vi* Taylor 
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MO Soto, I'm . A Stranger 
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■fg« am Close: Sit Up and 
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COMPANY NOTICES 


1 


* 1 

Wti- 

^>-.r -<i; 




400 YEARS AGO, EUROPE 
CARRIED OCT HER RIGGEST 



In 1492 Europe met the New World and 
was astounded by its economic, historic and 
cultural potential and undertook a great 
enterprise. 

In 1982, Merida Industrial Park was estab- 
lished in tbe heart of Yucatan Peninsula* 
and ororides a new reason for Europe’s 
participation in the New World's progress. 
Merida Industrial Park is located between 
two "real areas or development: the most 
important zone In the country and Cancan, 
the most progressive tourist centre in. the 
Mexican Caribbean. 

Considered by the Mexican Government as 
a priority zone for development, Merida 
Industrial Park is provided with all the 
infrastructure necessary for your industry. 


i SEND TO: 

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1 PO BOX39-For 190 
5 MERIDA, YUCATAN, MEXICO 

: AIN. MR. NICOLAS URCHLAY 
■ 

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1 TELEX : 

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iffi 


INDUSTRIAL 

PARK 

ANEW WORLD 
FOR YOUR INDUSTRY 


COLD STORAGE HOLDINGS PJ-C. 

NOTICE 'IS HEREBY GIVEN that Ore Anno si Gwrenl MreUnuof the 
Company will b* hold at Empire Dock. Singapore 0405. at noon on 25th May. 


7 Singapore cents par lop stock unit less Malaysian Income tax In respect of 
the Financial Year ended 51st January. 1952 payable on 28th May. 1982 to 
Stockholders on the Regfsmra as at that date, manna a totsl dMrtbotlon for the 
yoar of S7.800.000 (piedmt year 57 .800.000). 

NOTICE IS ALSO GIVEN that tho Transfer Registers of the Com p a rty will 
be closed from 19th May to 28th May. 1982 both dates htclosire. for the 
preparation of dividend warrants. 

The audited results of tbe Company and of the Group for the year ended 
31st January. 19B2 ware- 

Tfte Group The Company 

1982 1981 1982 1981 

5*000 S*000 5*000 5*000 

Turnover 759.500 358.200 — . — 

Operating Pratt betane taxation "55377 “zj.aS5 2o.lP9 an 8J» 

Taxation <7.775) (9.040) . (9JB9B) (7,485) 


Turnover — . 

1982 

5*000 

759.500 

1981 

.rooo 

358JZ0O 

1982 

5*000 

Operating prat* before uxortoa 

TlXlttOd 

"35337 

<7.775) 

JaJa4 

(9.040) 

20.189 
. (9JB9B) 

Profit altar Taxation 

Lac Minority lulu uN .. 

12.572 

<1^1941 

14.824 

<503) 

14,300 

ExtraortHtury items _ 

1 0.578 
3.582 

14J121 

8.095 

14JOO 

(3A8B) 

Profit attributable to Stock- 
hoUlers of Cold Storage 
Holdings' P.LC. 

14 aeo 

20r«lB 

10AM 

After charging: - 

Depreciathm of toted oraets 

7.688 

8.326 




Singapore. 

15th April. 1982. 


BY Order of the Board 
j: D. RAJ. Secretary 


ENTE NAZIONALE PER L’ENERGIA ELETTRICA (ENEL) 
7J% 1971/1986 Loan of European Currency Units 60,000,000 


Notice is hereby given to bondholders of the above loan that 
.the Deutsche Mark' (European Currency Unit 1=DM 3.66) has 
been selected as payment currency for drawn debentures and 
due coupon. - 

Drawn debentures and Coupon No. 11 will be payable on or 
after May 1, 1982 by the paying agents mentioned on the 
debentures. 

Fisc al A gent 
KREDIETBANK 
S-A. LuxembourgeoLse 


FINANCIAL TIMES 

PUBLISHED IN LONDON & FRANKFURT 


Hnri Mflcat Tha FkneH Hh 1WM, BmchM Usds*. 30 Comm Stratt,La«dM CC4F 46Y, 
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gw^fpS —i^. ■" re pi «*« , »j1 ft filTIffl Tisstt ml Ml M4s 1 

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TAfte 7590 157. 


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nMM “ a Mtrtcg nr P9 sm ilk Mann 122^10, Mndca 

te fra liter 13U04 Himiiin 2-M. Tate MF. Trtfes jssa, ^ 


CITIES SERVICE OVERSEAS 
FINANCE N.Y. 


17 HR CENT NOTES 
The nndmlpntd anoomcas that me 
annual report of CItfet Servfco Cam. - 
p«ny for. the year enoed December 51. 
1981 will be available la London at: 
Credit Same First Boston United, 
22 Bfahoessate, 

London EC2N 4BQ. 

April 27. 1982. 


NOTICE. OF MEETING 
SAVEItS ASSURANCE SOCIETY 
Registered 03, -t 
269 Parle Road, owiwm 
Laneashbe. 0 L 4 1RT 

ANNUAL GENERAL MEETING Of the 

above Society will be bold at the R roistered 

Office on Tuesday. 11th May 1982 at 
10 . 0 a. 0 . 01 . 

AGENDA 

1. To receive the Accounts tor the year 
ended 3 1st December 1981. 

2. Election of a member to the Commit- 
tee Of Management (Nominations must 
be sent In. wrfdnp to the Registered 
Oflce to be recelyrd there at lest 

• ' two ^ day before tha date of -the 

3. Amendment .to Rule 15 In order to 
appoint a Custodian Trustee. 

4 Any other Business. 

. SipoatJ.: G. W. C WATTS. 

Secretary- 


PUBLIC NOTICES 


HAMPSHIRE COUNTY COUNCIL 
£10,000.000 Bills Issued gn 26.4.82 at a 
rate Of 13<mK to mature 24.5.82. Total 
Applications wire £20.000.000 and these 
are the only Mis outstanding. 


LEGAL NOTICES 


IN THE MATTER OF 
POM ROUGE LIMITS) 

AND IN THE MATTER OF 
THE COMPANIES ACT 1948 

NOTICE IS HEREBY GIVSI that tha 
creditors of tbe above-nomad Company, 
which is being voluntarily wound up. 
are required, on or before the 19th day 
of July 1962. to sand In their, full 
Christian and sumames, their addressee . 
end descriptions, full particulars or 
their debts or claims, end tha names 
end eddcesMs of their Solicitor* (It 
anyl,. to die tindersignad Surflt Kumar 
Stagfa. F.C.A., of 423 Alexandra 
Avenue, Harrow. Middlesex. HA2 9SE. : 
the Liquidator of ths said Company, 
end. If an required by notice to writing 
from the said Liquidator, are, personally 
or by their Solrcttors. to coma In end 
prove their debts or efshos at such 
time end place as shffH be specified 
In such notice, or In dsfeufr thereof 
they wttf be excluded from. die benefit] 
or any distribution made before suoh 
debts ora pravod. 

Dated- this IWi dey of AprH 1982. 

S. K. SING LA. F.CJL. 

Uau'idator. 



CLUBS 


Al wtartUiig b srtfiet to the paNUtA cumal tew rod candUeev ctplci ef wHdi are avtiUMe aa 


AFINA1NOALTIWDK SURVEY 

BUILDING 
METHODS AND 
MANAGEMENT 

June 23rd 1982 


The Financial Times proposes to publish a 
survey on Building Methods and Management 
in its edition of June -23rd 1982. This sun^ey 
will examine Jipw major contractors have 
adopted a more . aggressive approach to 
marketing, and how the suppliers to the 
industry have fared. 


The survey will also include editorial coverage 

om- • - -- 

1. How tile client, according to his need, is 
able to select a contractor with a particular 
management package. 

2. The role .of the architect, consulting 
engineer 'and chartered surveyor. - 

3. Bniiding. systems: timber framed, steel 
framed, pre-cast, pre-assembled. 

,4. Thd bufldihg materials sector. " 

Copy date; June 9. 

For further information and advertisement 
rates p lease contact: , 

CHRISTOPHER ROBERTSON 
FINANCIAL TIMES 
BRACKEN HOUSE 
10 CANNON STREET 
LONDON EC4P 4BY 

Telephone number 01-24S S 000 extension 3246 
Telex. 885033 FlimM G 

.Tlie size, contents and publication dates of survey 6 in 
the Financial Times are subject to change at the 
V discretion of the Editor. 
























TkRdh-Royceisnotthecaritwas. 


THE SILVER SPIRIT - MORE A DRIVER'S CAR THAN CHARLES ROLLS EVER DREAMED OF. 

SSSSSHSSSK 

SSS” fc ”. , SgyaA. i_, aBaassacu*. 

i,»d„'.sih»s 1 »ite*.v I .. 

atesaseas- aassasaf— 


He sees more. Visibility on the 1982 
SD ver Spirit is thirty per cent better 
than any other previous Rolls-Royce. 

And thanks to the unique Silver 
Spirit suspension, he drives in a 
tranquillity that has been compared to 
the interior of a locked tomb. 


But more of that tomorrow. 


ESB0 



EHHl 




14. 


Financial Times Tuesday April 27 1982. , 


THE MANAGEMENT PAGE ; Small Business 

NORTHERN IRELAND: BY TIM DICKSON 


EDITED BY CHRISTOPHER LOREN? 



ALTHOUGH smaller com* 
panics arc frequently cited 
as a key element 'in any 
effort to retrieve unempioy- 
menu it is rare to see new 
job targets being set for the 
sector. 

In Northern Ireland, bow* 
over, a Government agency 
has now been given the task 
of promoting 12.000 new jobs 
in the nest Gvc years — a 
rate which means it must sub- 
stantially better its previous 
best efforts. 

Set up hack in 1971 — the 
year when the famous Bolton 
Keport first raised consider- 
ably the profile of small firms 
— Northern Ireland's Local 
Enterprise Development Unit 
(LEDUf is committed to pro- 
viding a wide range uf sup- 
port for both new and exist- 
ing businesses with less than 
50 employees. 


Financial packages — mainly 
grants .but also loans anil 
small amounts of equity — are 
the unit's main weapons in 
the fight for new jobs, hut 
other forms of assistance can 
be provided sueli as market- 
ing skills and technical 
advice. Frojects using new 
technology are of particular 
interest though anyone seek- 
ing support has to satisfy the 
unit that their idea has both a 
long term future and is 
adequately funded. 

The recent. Government 
decision not to involve LEDU 
in the new Industrial Deve- 
lopment Board (CDS)— being 
created by the current 
merger of the Northern 
Ireland Development Agency 
(NIDA) and the Department 
of Commerce to co-ordinate 

more effectively Northern 
Ireland's wider industrial 


development policies — can 
certainly be seen as a vote of 
confidence in the unit's work. 

LEDU has established an 
identity among the small 
firms it aims to encourage 
and while it is not without its 
critics iocaUy it can in many 
ways be seen as a mode] far 
a more integrated Government 
approach to small businesses 
elsewhere in Britain. 

LEDU measures its success 
in terms of employment pro- 
.motion and over the past 11 
years more than 10.900 sew 
jobs have been promoted as 
a direct result of its activities. 
Grants amounting to more 
tban £21nt hqve been com- 
mitted over this periad 
(£3.Sm alone in the year fa 
last May), together with 
loans of around £5m (about 
£200.000 in 1980-SI). The net 
cost per Job, two-thirds of 


which are estimated to be 
stilt in existence, works out 
currently at roughly £3,800. 

LED Li’s target of 12,000 
new jobs was set last yCar. 
and revealed in a paper— 
Framework for Action— pre- 
sented by James Prior, the 
Secretary of State for 
Northern Ireland, in October. 
It is an ambitious target bear- 
ing in mind that while the 
unit's contribution to employ- 
ment has been rising, the 
total number of jobs created 
over the past two years has 
still not been more than 
1,200 per annum. 

A new strategy is therefore 
being applied to get beyond 
this plateau. 

This will involve concen- 
trating much more on 
expanding existing bustnclses 
than helping to create new 
ones, according to George 


Mackay. LEDlTs chief 
executive. 

“Perhaps 20 per cent of 
our activities at the moment 
are associated with existing 
companies,'’ he explains. “We 
would like to get this up to 
nearer 40 per cent. We feel 
that we can help businesses 
that are prepared to consider 
expansion, and wc will be 
assigning, people to assist in 
the identification of new pro- 
ducts and new markets. We 
are sure that there is a lot of 
uncxplolled potential in 
Northern Ireland.” 

At the same time LEDU is 
devoting more effort to com- 
panies in the service sector. 
“We felt that we were putting 
too mach emphasis on 
manufacturing.”’ says Mackay. 
** There are a limited number 
of people with the interest 
and energy in Northern 


Ireland actually to make 
things and it has become clear 
that many of those being 
made redundant were not pre- 
pared to take the risks, 
although they have the 
requisite skills.'' 

LEDU operates through 
four area offices which In 
turn are split up Into teams. 

The idea is that one mem- 
ber pf the team develops a 
special relationship with a 
client company, helping it to 
overcome all obstacles to 
growth. LEDU reckons lo be 
able to cope with most' 
financial, administrative and 
technical problems. But with 
marketing — which is “in- 
dustry specific*' — tt usually 
goes for on (side experts. 

Mackay is keen that the 
unit should not just be seen 
as a source of money; advice 
on accommodation, other 


.sorts of Government help 
and introductions to the 
hanking world can also be 
provided. Financial packages 
la fact, are often put 
together with the assistance 
of the banks, 

LEDU docs not manage to 
please everyone. It h, for- 
example, the target for alle- 
gations that it is bureaucratic, . 
notably because applications 
have to be approved by a non-, 
executive board. Frustration 
can arise if ' a local LEDU 
representative promises one 
thing 1 and the board another.' 

Others complain that LEDU 
is too fussy about who It 
backs and too careful with its 
resources. Although all are 
agreed that there is no point 
in throwing good money after 
bad. some entrepreneurs say 
that the unit should itself 
take more risk. 


New skills born out o 


If if a. 

-it A 


sion 


TEXTILES were once manu- 
factured and, more recently, 
hens allowed free ranae inside 
Ihc solid stone outbuildings at 
Dough, near Ballydare. which 
now bouse two small Northern 
Irish cnginccnns firms. 

In the next couple or months 
an arguably more radical. if 
less conspicuous, transformation 
will be taking place on this 
County Antrim site which lies 
in open countryside some 20 
miles north-east of Belfast. 

Thanks to a deal signed Iasi 
December the two firms — Ulster 
Engineering and its sister com- 
pany Gowdy Gear and Engineer- 
ing — are on the threshold of 
moving from skilled but un- 
predictable sub-contract work 
to rake on rhe more exciting 
manufacture of a world beating 
product. 

The product is a new and 
remarkably powerful waste- 
shredding machine which de- 
r/ours everything from card- 
hoard boxes and tin cans to 
old tyres and steel pipes. It 
can reduce in size certain waste 
products by up to 10 times 
their volume. 

Developed by Al Kaczmarek. 
a German-bom American, who 
is president of !he Shredpax 
eorpnraiion of Chicago, ihe 
machine is made under licence 
in Australia. Canada and Japan 
but so far has not been manu- 


factured for distribution in 
Europe. 

Following last December's 
agreement that opportunity has 
now been presen led to the two 
fiallyclare firms and in particu- 
lar to their managing director 
Jack Gowdy. 

• At this stage of their develop- 
ment Ulster Engineering and 
Gowdy Gear are just the sort of 
companies which the province's 
Local Enterprise Development 
Unit t LEDU > — see above — is 
increasingly keen to promote. 

Attracting big companies to 
the “Province" is still the major 
plank of industrial development 
but as Jack Gowdy’s own exper- 
ience illustrates big multi- 
nationals can be fickle and leave 
in their wake much more than 
their own redundant labour 
force if they decide to pull out. 

Ulster Engineering, which 
Gowdy founded with a partner 
in 1971, and Gowdy Gear, which 
he set up separately in 197S to 
develop more sophisticated but 
more nsky gear technology, 
were until the end of 1979 both 
heavily dependent for business 
on local factories owned by the 
big man-made fibres groups. 
“At about that time most of 
these groups started to 
stagger," recalls Gowdy. “while 
I appreciated the problem then 
I thought u would be another 
four or five years before the 



sector colic psed. I r.eycr 
thought computes Ukf ICl. 
Dupont. Briti :h Etikstan ;.nd 
Court a i: (ds v.-ouid 'cios? do .vr. 
the:r Northern Irish 
so quickly." 

The position was so desperate 
by the middle _o? i&SH — when 
closures were being announced 
thick and fast — that both 
Ulster Engineering and Gowdy 
Gear were down to a three-day 
week and 25 per cent of the 
workforce had to be If.id off. 
By the end of that year, how- 
ever. things had started to look 
up. 

“We quite consciously looked 
around for new markets and 
identified aerospace, oil. mining 
and defence industries as 
growth sector-'," >:tys Ov.dy. In 
particular Ulster -in pilfering 
started bidding for some sub- 


contract work for Short 
Brothers, the big state-owned 
aircraft manufacturer and- 
engineering group in Belfast 
and “ a' company we had shied 
away from in the past because 
wc thought their standards 
might be "too exacting." 

Hard work and the develop- 
ment of new’ skills, however, 
paid eff with the result that 
Ulster Engineering eventually 
won an order to produce ribs 
for aircraft wings. Some 60 
per cent of tiiwaover is now 
attributable to .(he aerospace 
sector. 

Although this new activity 
was keeping one of the com- 
panies busy, Gowdy Gear was 
still struggling last year to find 
enough work. 

Gowdy explains: "We thought 
the best thing to do was to 
look for our own product so 
that we could use the engineer- 
ing skills of both companies 
more effectively. I was also 
keen on our own product 
because there is more money to 
be made." 

After looking at a couple of 
other licensing opportunities, 
the American link came about 
through a lucky break. Quite 
by chance Gowdy discovered 
that another local sub-contract 
engineering firm was negotiat- 
ing with the U.S. corporation. 
“When they withdrew I rang 
up Chicago and said we were 



EmSsa , 

aRfe-Ja 


Teamwork behind a successful licensing agreement: ]adt Gowdy; Bill McConkey, of LEDU; Al Kaczmarck, 
oF Shred pax Corporation; Robbie WhitJa, of Ulster Sank 


interested. I asked LEDU if one 
of their represen taiives would 
fly out with me and at the end 
of a couple- of visits we had 
signed the deaL" 

Besides the -licensing agree- 
ment Gowdy also came home 
wiih an initial £800,000 order 
for the machines from Shred- 
pax itself for the U.S. market 

Naturally enough Gowdy is 
excited by the potential for ibis 
new “garbage gobbler" — tyie 
companies and other industrial 
groups are already displaying 
a keen interest and local 
authorities are another ohvious 


source of -business. The licens- 
ing deal, however, has also 
brought with it. a few head- 
aches. 

Money- not. surprisingly, is 
the chief worry at the moment 
though the package of grants 
and loans he has negotiated 
with LEDU and his b3nk 
(Ulster Bank) should give the 
companies enough . “front 
money" to take on and train 
extra labour, buy in materials 
and cover the expenses of the 
licensing agreement. • 

The engineering expertise of 
the companies that helped win 


the contract would not have 
been possible without the com- 
puter numerical control (CNC) 
machine tools they installed 
(with LEDU help) in the 
middle of 1980 says Gowdy. 

He is also convinced that 
small locally based firms hold 
the future in Northern Ireland 
and elsewhere, but that the 
Government must encourage 
them to exploit overseas mar- 
' kets. "We must have more con- 
fidence to ‘think big because 
if we do not there are plenty 
of competitors who will do so 
for us," says Gowdy. 


lubrief . . . 

THE FULL Ust pf banfe- 
whtch are to operate (he 
Department ol Industry's 
small firms loan guanuate*-. 
scheme has now beea- 
asscinbled with the aanonnee-' 
rarnt last week that three 
new banks have been 
included — Standard Chart- 
cred. Beneficial Trust, ‘./-and 
Bank of Credit and Cora- 
Bierce. ■ . . \f... 

There arc now 30 banks In 
the scheme— which is operat- 
ing on a pilot basis— and no . 
more will be added till it is 
put on a more permanent 
footing in pernaps a year or 
so. At that stage it .may. he, 
at least partially redesigned. 

Use of the scheme by the 
banks is varying widely. 
Barclays is Icadin&j^aying. 
agreed . 736 loans., worth 
£2S.2m out of the . total 
3,350 loans (£U3m) approved 
by the Industry Department: 
At the ether end qf the scale 1 
banks tike the/ U.S.-owned • 
Beneficial _ Trust.;:-: (whose 
interest in small businesses 

stems from the Birmingham- \ 
based Securities Trust which \ 
it absorbed in 1980) jaw only 
do SO or 30 loans in the first - 
year. ‘ : •' C ' 

© 

VALUE ADDED TAX (v£t> 
and the form filling that , 
accompanies . It - probably..' 
causes more anguish for 
smaller businessmen than any . 
other aspect of Government ■ 
policy. Now a new working - 
party has been set up to con- 
sider. ways of simplifying, the 
system and foraurlaf/ng pro- 
posals for next year’s Finance : 
Bill. 

. The working party will be ! 
chaired by City accountant i 
Ian Davies and is. sponsored j 
by Michael Grylls, the Twy • 
backbench MP, .and Fred. 
Titckman, the ftTEP for.Leices - 1 
ter. The Forum of Private 
Business, the Association of 
Independent Businesses, .the 
'National Federation of Self- 
Employed and the Small Busi- 
ness Bureau are represented. - 

Submissions should be sfcnt 
to; Miss Kate Barker, 4, 
Churton Place, London 5!W1. : 


HARD pressed UK businesses 
whose customers ;- dont pay 1 
their debts might lake a leaf 
cut of the hook of a U.S.- 
Corporation. Bear: Sir," it ( 
wrote in desperation, -’“.If you 
look at tfce^date/bf our last 
invoice yoa'.wiU-see that wc 
are doing more tban even 
your own mother. We have 
carried you for the last 12 
months." 




A 



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A 

-j 6b£s s &’ 


Revolutionary NEW ENERGY - WINNING - SYS JL JEMS 
discovered, for autonome home-supplies, powering land; 
maritime transport-means at low costs. Serious Partner wanted. 
Contact: USO Intern. B-10. B-4S20 DISON/ Belgium 


BERLIN'S BUSINESS BID 

In response la the enaulrUW received 
loilowma a feature in -The Director' 
on Won Berlin. the Berlin Economis 
Oeteiopment Carp, is pleased to 
announce that their UK. Representa- 
tive insa Haag. 1 Uppc- Wlmpolc 
Street. London. W1 rai-935 9562) I, 
nt your disposal to supply detailed 
information on Berlin's economic on DOT - 
tunitiw and Incentives. 

You may also like lo consult with 
two representatives ol the Berlin Econo- 
mic Development Corp. at an open 
dsv on 4th and 5th May. at the 
German Chamber of Industry and 
Commerce. 12-13 Suffolk SI.. St. 
James's. London. SW1 101-930 7251). 
concerning your company's lor cion 
protects. 


SWITZERLAND 




V 


’pro ' 


r-fir, 




■> 

VI 


Refinery Labour Camp 

TO ACCOMMODATE 
500 PERSONS 
completo with all furnishings 

Alan Canteen and Amenity Building 
lo cater lor 2.000 Approx. 2 years 
ild. ideal for Leisure Complex. 
Boarding Schools. Scouts etc Avail- 
able complete or would divide. 

Turn Key deal il required 

APOLLO SITE SERVICES 
LIMITED 
0732 823401 




ESTABLISHED UK BASED 

foreign property Go. 

in tlin Leisure Industry 
Require irnmodiJia S200.0W invest- 
ment la finance a unique high 
return proposition. Principals only. 
Write So, - F's136. financial Times 
10 Cannon Sneer. EC4P 4BY 


VILLARS LUXURY PROPERTY FOR 
SALE EXCLUSIVELY FROM THE 
OWNER BUILDERS 

One of Switzerland’s most fashionable resorts. Exclusive 1 to 8 
room apartments in traditional Swiss style buildings. Each chalet 
has between 6 to 12 apartments only. Individually set in almost 
200 acres of lightly wooded alpine parkland. Facing south with beautiful 
views over Mont Blanc and the Swiss and French alpine chains, yet little more 
ihan an hour from Geneva International Airport. Designed and built by our 
own craftsmen. 

SWISS GOVERNMENT REGULATIONS: All arefully met, for sales to foreigners residing abroad. 

LEGAL /BANKING REGULATIONS: Mortgages — up to 60% over 20 years; low interest rates. 

RENTING: Our associate company provides a fulLmanagement service. 

MONTREUX ON THE SHORE OF LAKE GENEVA. IDEAL FOR RETIREMENT* 

ALL YEAR ROUND TEMPERATE CLIMATE. . 

We can now offer you the finest luxury freehold properties available. First class secure investment for the future^ •' 

For full details of all our properties please contact Mr. Christian Marich in London at The Dorcliester 
Wo tel. Park Lane W1 (telephone 01-629 8888) from Tuesday 27th April to Saturday 1st May. . 

Immobiliere de Villars SA + Sodim SA 
P. O. Box 62. 1SS4 Villars-sur-Ollon, Switzerland. 

Telephone: 010 41 - 25/35 35 31. 

Telex: 456213 GESECH || 


CHEMISTRY/GROCERY 

SALES WANTED 

Our 5alcs Force currently sells several brand leaders through 
the ehcimsr grocery trades achieving widespread national 
distribution at all levels. 

We would like to hear from companies with existing brands of 
il million plus turnover who seek ro reduce their selling over- 
heads and/or increase sales volume by appointing an effective 
distributor. 

Alternative!/. we arc interested in outright acquisition of 
profitable on-going brands. 

Pli.vJf uriir in conhdcnco to Bo* F313 T 
Financial Timas. 10 Cannon Street. London ECdP JBV 


EIU Special Sepori No. 105 

las Ia?sss and their uses 

TOiers there is a Trill there is a way.- The attractions, 
and pitfalls, of tas havens as a counter to the ever ' 
growing burden of taxation are examined in this - 
comprehensive study of the individual havens 
available both to corporations and individuals. 



Subscription Department (FT) r 27 St. JamessPIact;, 
London S v71 A INT. Telephone :'Ql-493 6711. 


FINANCE FOR 
GROWTH 

Factoring provides finance, beyond 
com entfanal borrowing limiu, BS M 

without surrendering equity or 
management independence. 

Aiex.Lawrie Factors Limited 

For details contact: London (Oil 6-6 CM 8+ 

Bristol i0272 >29 KP* Cm cmryiO? ) 5«*; 2 Manchester (06!) S3474I5 
ygwuwiictn63:i ?1<S79 i:dinburghl03n;264?9q Banbuiy (0295)36041 


DJ.Y./Consumer/ Hardware Trade 
U.K. & Overseas 

Lon- established and financially strong company based South East 
Ensfand, wishes to acquire (merger possible) business with 
strong management »nd established product lines distributed to 
an* of the following outlets: Builders' Merchants. Departmental 
5:or«. Chain Stores, Hardware Retailers, D.I.Y. Supermarkets. 
Direct Mail Order. 

Plmsn »vri re in cempifta cnnlidonre to Bor r313J 
Financial Timas. 10 Cannon Street. London ECaP 4QY 


HOTEL PROJECTS 9N ISRAEL 

4* FIVE-STAR' 50G-KOOM HOTEL PROJECT — EILAT * 

* FOUR-STAR 260-ROOM HOTEL — NAZARETH * 

Initiator is prep-red to dispose of all or part of his interests in 
development of a ECC-tQcrr. hotel on best remaining site in Eilat 
and first large best! tc c; built In Nazareth capable-of handling 
mass pilgrimage tours 

Projects, in initial sta;e ef construction, have bacn approved for 
sizcaale Israel G over. in::. it lew-interest mortgage and cash grants. 
Fcr nicic murm/hon’ 

EUROTEAM LTD. 

iJMf-JSirv Hcujc, Hamerod Street. Tel Aviv, ismd 68 12B 
Tc! tt&) eSSs5s. 652077 - Talc*: W2350 BFC IL 


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pusiny.im.in c. : i s; “ 'CT* tr.n- 
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A one-hour service 

Intent In the g-awing and lucrative 
"oho to processing market. With a Hoop 
Pfflcct-Flow processing lab., si red In 
a busv shunning area, vau can offer 
D 4 P customers a t hour or samp 
day service 

The machinery will cot: about £55.000. 
Tnc income cairid keen you and your 

bant manage- -eCy haaoy. 

Get the facts from John Allen. 
HOPE INDUSTRIES UK LTD. 
North bridge Road. BorhSUMlWB lead 
Herts. HP4 1 EH. T*l: C044271 74792 


TRAVEL AOmCY QROUP 
REQUIRES TOP BUSINESS 
INTRODUCTIONS 

We are- looking for persons with good ' business 
connections who are well known by the directors and 
senior management of commercial ond industrial 
concerns who can use these personal contacts to promote 
the company's business. Contacts can be made and 
developed to suit your own commitments. The remuner-. 

ion (which can be considerable) wtff be based on the 

business resulting from your introductions.' 

We -ore fully licensed travel agents and the involvement 
requires no investment nor any travel industry 
-experience. 

If you have the necessary qualities for this type, of, 
challenge' you are Fnvifed to write direct to us with the. 
assurance that your request will be treated in the strictest ' ■ 
confidence. 

David French- 

KAL Enterprises (Travel) Ltd. 

56/60 Conduit Street .London Wl. 



BUSINESS AIRCRAFT 

Executive Air Charter Company otfrra 
Companies buying their own -grporaTc 
airryafl complete aircraft management 
and additional rc-cnuo earning inlllu- 
tton on ialm uic arrangement. Deferred 
purchase bnsner Involving minimal 
Initial payment and balance after S or 
more years ataifable to purchaser! of 
good <0»cn«nt 

Write Boa F.3132. Financial Times, 
to. Cannon Street, tondon ECdff 4BV. 


SOUTH AFRICA: : v 

STEEL INDUSTRY. 

Leading steel processor invites venture capital- 
up to £.5m for development of service centre. 
Investment need only lie short term up To 3 years- 
Marvellous opportunity. •' ” 

Write Box F813*, Financial Times ' . V 
10 Cannon Street. London EC4P 4BY . . v V ; 


■ - 












'c—-. 



. financial Times Tuesday April 27 1982 


15 



WE SEEK TO ACQUIRE 
A MAJOR SHAREHOLDING 
IN A COMPANY WHICH IS 
INVOLVED IN THE MICROFILM 
BUSINESS & ASSOCIATED 
EQUIPMENT 

The company could be a bureau, 
possibly with equipment interest, 
□r a microfilm equipment business, 
possibly with bureau interests. The 
company must have a profit record, 
with a progressive turnover. We 
3ra pan of a major public group, 
and only principals should epply. 
All replies will be treated with 
absolute confidence. 

Write Box F3140. Financial Times 
10 Cannon Street. EC4P 4BY 





Mil’ll get no special grants for movingyour business to - 
Peterborough. Because you won’t need them to succeed here. 

Instead you’ll get something much more valuable- 
the Peterborough Effect Thatrare combination of benefits that 
has helped so many companies improve output, product quality 
exports and profits. 

Iivmg and working conditions in Peterborough are 
excellent This old cathedral city is being expanded and refurbished 
with great care and skilLNew office and industrial parks, new 
shopping centres, a country park, anda great variety of new homes 
are closely integrated with the old city 

So Peterborough remains a single city unique in all Britain 
in its sensitive but dynamic blend of old and new. It’s less than an 
hour from Ring’s Cross. Hundreds of companies-Iike Caribonum, 
Thomas Cook, Pact Intemational and Pearl Assurance-are here 
already tou can ask them what Peterborough has meant for their 
businesses and style of life. 

'fou’ll get so much more from your business - 
because you and your staff will getso much more from 
Peterborough. 


Call John Case today for details. 
Phone Peterborough (0733) 68931 




V .! 


that’s the Feterbo* 0 



* 

T • 


MARKETING TO INDUSTRY 

4.M.C.C. provides a apedalltt. competent, professional servic* to companies 
marketing pood* and BSrvtce* to Industrial ours. The service cm be either 
consultative or participatory. We offer wide exeerlence. total confidentiality. and 
a profit-orientated approach at affordable rates. 

Consult os repardlnti Organisation — Shorr and Jonger-term market plannlnp- — 
product development — pnono policy— customer image — market research— sale* 
management — distribution — commercial latelUoance — publicity. . 
tnvita oar participation m your activities hi anv of the above areas on a 
short-twin or periodic basis os an alternative to expensive and often unnecessary 

management recruitment. 

Phone or write tor brochure, more details or an- appointment for discussion. 
Industrial Marketing Consultancy Co„ Northern Assurance BuDdlsus, 

Albert Sooare. Manchester MZ AON. COES; 6X4 412C, 


SMALL 

BUSINESS 

( Exports, recently storied ) 

Owner f D&ublo First, Cambridge. 
Diplomatic Service, then senior 
Executive (Commodities) with 
Pirelli end Dunlop! needs £5.000 
now. £25.000 July. £25.000 October, 
to expend very interesting patented 
lines. Proposals to; • 

PO Box 222. Cambridge CB4 1JS 


Privately owned group of north western 

ENGINEERING COMPANIES . 

HAVE CAPACITY FOR GEAR CUT- 
TING. PRECISION. REPETITION 
MACHINING. SHAFT REFURBISHING 
AND REPLACEMENT, etc. 

We wish to locate Independent agents 
for our products on a commission, 
basis In the Southern Counties. Alter- 
natively. we would be delighted to 
discuss In confidence, details of pos- 
sible customer contacts with individual* 
hating this specialised knowledge. 
Brief details please to Managing Direc- 
tor. Box F.31S0. Financial Ttmto. 10 
Cannon Street. London EC4P 4BY. 


£50.000 INVESTMENT rOQUlrod to *w»nd 

U.K. Management CoiuulHmi Oner* Hon 

With secured alignments in far 

Middle Cbm. also Africa: Prlnc^ais 
only write Bo* F^l*7. FinmcU! Tim«a. 
10, Cannon Street. London 8C4P mt. 


NEW/SECONDHAND 



AUTOMATIC RADIOPHONE? 


If you are one of tha lucky 
few who have been offered a 
number by Tel acorn on' tha 
London Automatic Radiophone 
Sanies, wa can help. 

Phono: 01-267 £707 


CARGO SHIP FOR SALE 

Modem Container, timber and gen- 
era J cargo vessel for safe sr £2. Jm. 
Presently financed on subsidised, 
government loan ( 60 %! 'which is 
transfarablo. Present owners would 
consider . outright seta 'or lime 
charter back and could offer full 
ships management service. Good 
capital allowances poientM. 

Write Box F3138, Financial Tunes 
10 Cennon Street. EC4P ABY 


USA EXPANSION Comoany experienced In- 

Business start-ups and franehlstag seeks 

eHe-ras wishing to expand Into tile 
world’s major market. Woitram 2425 
Petr Rtf.. Southport CT 04490. Phone: 

203-255-3940. 

EXCEPTIONAL OPPORTUNITY for Large 
Amndai or contracting company to 
obtain contract , In. "ar East wjtfi large 
pronto. Principals wily writ* Bo* 
F.314B. Financial Times, 10, Cannon 
Street. London EC4P 4BY. . - -- 


<4 

J 

& 

r\ 


BUSINESS ADVERTISING 
RATES 

Per single column centimetre - £29.00 

per line £8.50 

Premium positions available (minimum size 
30 column cm) £35.00 per single column cm 

For farther details write to: 

John Wisbey 

* Financial Times 

10 Cannon Street, London EC4P 4BY 
quoting reference JA4 

All business advertisements are subject to our condi- 
tions of acceptance which are available on request 

Readers are recommended to take appropriate professional 
advice before entering into commitments 


BANK LESSORS 

Corporate tax shelter available 
for major bank lessors- with per- 
mission to sub-lease to approved 
clients. 

Please write Box F3135 
Financial Times 
10 Cannon Street, EC4P 4BY 


BRITISH GOLD . 
SOVEREIGNS 
FREE OF V.A.T.. 

Please phono Mr Cavendish or 
Mr Woods 0GS44 24316/378595 
SHAW CAVENDISH 8t CO 
(Bullion Dealers) 
Cavendish House. Chester 


LIMITED COMPANIES 

FORMED BY EXPERTS 
. FOR £97 INCLUSIVE 
READY MADE £105 . 
COMPANY SEARCHES 

EXPRESS CO. REGISTRATIONS LTD. 
■ Epwonh House 
25-35 Criy Road. London, EC1 
01 -828 5434/5, 7361 . 9938 


NEW PRODUCTS. AGENCIES, 
LICENCES SOUGHT 

Profitable private manufacturing com- 
pany la Kent wttii management 
expert!**, finance, Mies organisation 
computer and fully aciofpped laboratory 
seeks new products, agencies or 
licences to manufacture and/or sail to 

absorb spare capacity resulting from 

rationalisation. 

Telephone Jobe Proctor 
dan no boilua ham 0732 *43131 


LIQUIDATED STOCK 

2 Rank Xerox 660 copiers £300 
1 Rank Xerox 3)00 copier £850 
1 KaHe/IBM Word Processor 
£425 

All In good working condition 
Ref: CS. 089286 2024 


WHY LEASE YOUR 
NEXT CAR? 

You can buy on our 
Purchase Plan 

* 10% Initial rental 

* 48 months repayment 

* No VAT an rentals 

* Ultimate ownership 
FBIRyWISE FINANCING. & LEASING 

Tel: Esher (0872) 62467/88780 


YOUR OWN-LABEL CREDIT 
CARD 

-Boost your- turnover by-offering your 
customers a credit card they can 
use only in your stores. Discover 
how aasy this can be arranged, 
financed, administered end designed 
to meat your specific needs by 
writing to: - ... 

. Box F3Q84, Financial Times 
10 Cannon Street. EC4F 4B Y 


DOES YOUR COMPANY SPEND 
AT LEAST £50,000 p.a. ON PRINT? 

Then we would like to talk to you. As established, profitable printers (t/o 
£280,000) wa ere willing to ofiar a shareholding in the company in exchange 
for guaranteed work. In order that we mey consolidate our position and 
continue .to expand. 

Write Box F3139. Financial Times. 10 Cannon Street. EC4P 4BY. 


SHARE CAPITAL OF PROPERTY COMPANIES 
OF All TYPES PURCHASED 
Immediate decisions and market price given 
by property and company specialists. Agents position 
respected. Reply in first instance to-. 

Bell Management Services Ltd. 

• P.O. BOX 73 DOUGLAS ISLE OF MAN 


NEW PRODUCTS 
INTERNATIONAL 

A new monthly publication to keep 
you abreast with the vary laten 
new product developments .world- 
wide. For details of a FREE TRIAL 
offer, writs today; - 

New Products Internstionil 

Dept. FT4 

15 Salvage Lane, London NW7 3SS 


PLACERS LIMITED)— Name available tor 

transfer. Sensible offer please D1-4BG 
3068. tO to 4 weekdays, 01-903 0728 
B to M> evenings. 

VENTURE CAPITAL REPORT. 2 The Mall. 
Bristol. The lint baninn. I n ve stm e nt 
lands and moll businesses. Investors 
end entrepreneurs rtag (0272) 737222. 
YOUR REGENT STREET OFFICE with a 

comprehensive range of sendees from a 

nettabte buskins address & phone 
answering to luxury famished ©Aces, 
secretarial, fax. Xerox, etc.— Chatham 
Executive Centre-. Tel: 01-489 6288. 
El A WEEK FOR K2 ADDRESS combined 

with phone messages and telex uodcr 

£4 a week. Prestige Offices near Stock 
Exchange. Message Minders Intar- 
l national. 01-628 0898. Telex 8811725. 

CAR TELEPHONES— The Hg names, we 

have Bum all. Before buying, tolling. 

fearing or part exchanging a earphone 

contact the toeCWIIsa, C&rehon* Con- 
sultants Ltd., supplier* of approved 
Marconi and . Securlcor Radiophone 
eoalnment on 0225 60318 or Telex 
444209 12* trouffa. ... . 

USA EXPANSION Company experienced hi 

bastnesa start-ups asd franchising seek* 
clients wishing to expand into- the 
world** malor market. - Wrstruro 2423 
Post Rd_ Sontimort CT 06490. Phone: 
208-255-3340, 


EQUESTRIAN CENTRE 
near London requires additional 
working capital. Would like to hear 
from those with an interest _ in 
horses and. having working capital 
to invest — not leas than £50,000. 

Contact E. P- H. Barber, FCA 
, BARBER & CO, 

Chartered Ac co un tants 
3 Cardiff Road. Luton, Bads 
• Tel: Luton 429292 


DIVERSIFICATION OPPORTUNITY 
FOR SMALL PUBLIC COMPANY 
Two dynamic advertising executives 
seek small quoted public company 
(wtthlwltnout tsx losses! seeking to 
diversify out of traditional business. 
Venture Involves acquisitions ■ Pro- 
gramme of tompanle* engaged :> the 
advertislng/marketing Industry. Eqnftv 
position required Principals only to: 

Box £3146, Financial Timas 
10 Cannon Street. EC4P 4BY . 


AFRICA 

We are > major United State* manu- 
facturer oi wstraaties and toiletries 
designed for the - black custom sr. 
We an inking substantial distribu- 
tors for various African markon, or 
individuals with contacts in Africa 
capable of placing major distribu- 
tion commitments. . 

Write Box F3149. Financial Times- 
JO Cannon Street. ECAP <8Y ■ 


CLADDING AND INSULATION — Estab- 

lished. small and busy specialist manu- 
facturer 'contractor with new products' 
Ideas wifi be interested to meet pros- 

pective associates. 1 backers Write Bax 
F3143. Financial Time*. 10. Cannon 
Street. London EC4P 4BY 

OPPORTUNITY. Possibly tire biggest' 
growth market in the UJC Is that of 
p.O. approved machines which keep 

details of. the cast, destitution and 

duration of >11 she** calls. To parttel- 

. pat* phono COST A CALL LTD. CQZ23J 

B35799. 

FUND WANTED (or Apriesjftursl invest. 

. meet . Sale and I eeteharjr. Bedfordshire. 

£ 600 . 000 . Contact Robinson & Hail, St- 

Paul's Square. SadfonL 


OPPORTUNITY 
FOR PUBLISHER 
OR SUBSTAMTIAL 
INVESTOR 

To acquire half interest 
in exciting new monthly 
financial news letter 
write Box F.3151 
' Financial Times 
10 Cannon Street 
London EC4P 4BY 


LADY RACING DRIVER 

With proven crack record seeks 
additional company sponsorship 
■for remainder of 1982 season 

Contact: Laris Skiiletsr 
BEAUTY BASICS LTD. 

Unit D. 51 Carthorpe Street 
London. WC1 - Tel: 01-778 9507 


PLANT AND MACHINERY 


FRUSTRATED EXPORT ORDER 

Unused oil-fired hot ’water' boilers, 
output 10.0QQKW, working pros sure 
150 p.a.i.g. Peeked • in shipping 
e rates ready for export. Now price 
over £29,000 each. Three aval la bis 
■t only £12:500 each. 

. J, T. LEAVES LEY (ALREWAS) LTD 
Alnwu, Btirton-on-Trcm, Staffs 
Tel: 0283 790333 
. Telex: 34328 Lasurp G 


TV/FILM 


Profession!/ team with 
considerable experience and 
contacts in independent 
television and film production, 
management, finance, marketing 
and distribution require 
investment capital to establish 
their own operation. 

Write Box F31S2. Financial Timas 
10 Cannon Street. EC4P 4£ty 


SEEKING JOINT VENTURE 
PARTNER OR LICENSEE 

for each European country 

Most successful and unique 
- Pizza lonsept 
_Ovar 700 frandi4ea In U.Sa. 
Can meet In Paris May 3 or 4 
or London Mav 6 or 7 
Reply: Lou Gunilck . 

Business Expansions International 
Pleas* call (211) 829-5311 UJnA. 
or Kensington Hilton May E, 7, a, I 


TEXTILE INDUSTRY 

COULD YOU USE A MAN 
IN NEW YORK 1 

Experienced Irom row materials to 
retat], skilled in new products — 
naw markfits, BS Chemistry. MBA 
Wharton. 

John Roughen. Suite 5404 
Empire State Buil ding . NY 101 IB 
or Telex 237919. 


fork LIFT TRUCKS. We. hew a large 
toteeftoh of need trucks, ready for 
Immediate wort. Oraort enquiries wel- 
comed- Birmingham Pork Lire Truck 
Ltd.. 4-8 Hams Road. Saltier. Birro I no- 
ham. Tel. 021-327 5844. 


Salks office uuisssls — r*im>hon» 
answering with company name Order 
taking. Dorn id nation. Talex service. Tex 
processing. Office rental. dynamic 
OFFICE SERVICE. Av d« la Tanche 2 
_S. 1160. Brussels TaL* 660.24.80. 

Trims 25387. 

PATENTED VACUUM 'MUD ' FLUID handl- 
ing, system J or safe full developed and 
engineered. Full sales and worldwide 
outlets available. Writ* Box F.3145, 
financial Times. 10. Cannon Stmt, 
London ECap 48Y, 



OFFICE FURNITURE 

40% OFF LIST PRICE 

EX STOCK 

in rosewood, walnut, light tak 
and other finishes 

Executive and operational ranges 
Complete office furniture 
brochures available on request 
London 01-805 2566 
Birmingham 021-784 8944 


WHY NOT WELLY? 

W» are looking (or peopH* who 
want to start up their awn business. 

We ate loo lung lor people who 
want to relocate to a less expansive 
area. Wo ofiar advice on obtaining 
finance, property, industrial and 
technological consultancy . W* even 
know where there is property rent 
free (or an initial period and where 
business grants of up to Q.CA0 
can be obtained. 

And wii don't charge a penny 

Write or phone; 

INPUT. 65 The Avenue. CliltonvIlTa 
Northampton - Tel: (0604) 37401 


Bto|HhXl a 

mortgage 

THE NEW MAGAZINE 

FOR HOMEBUYERSAT 
YOUR NEWSAGENTS NOW 


SMALL, PROFITABLE 
PRIVATE SERVICE COMPANY 

to P harm ecfriiti cal end Chemical 
industries seeks takeover 
or buy-out to enable MD 
to semi-retire 

Write Box F312S, Financial Times 

TO Cannon Street. EC4P 4BY 


A WORKING INVESTMENT 
REQUIRED 

Young man with funds available 
wants to buy into a business mak- 
ing profits of between C50-C1 00.000 
pa. Participation must be no less 
then 50°. o. Company capable of 
expansion. London area. Only 
genuine enquiries please. 

Write Box F31Z4. Financial Timex 

10 Cannon Street, EC4P 4BY 


TAX SHELTER 
REQUIRED 

Financial Consultant* require sub- 
stantial amounts of corporate tax 
shelter for major bank lessors, con- 
tinuing annual requirements 
preferred. 

Write Box F313T, Financial Times 

10 Cannon Suan. EC4P 4BY 


' NEW’ DEVELOPMENT 

In Houseware'Glft fiiew. Major advan- 
tages and 40*» Increased efficiency 
over existing Products. Marginally 
lower production costs estimated. In- 
ternational patents pending. Wanted 
— company to develop, manufacture 
and market under licence. NRDC has 
received report and would be willing 
to consider Joint venture finance with 
British manufacturer. Write _ Bax 
.F.3I38, Financial Times, t O Cannon 
Street. London. EC4P 4BV. 

LONG-TERM FINANCE secured only, 
available for companies and the sett- 
emploved Irom ts% o.a. Call R. 
Palmer, ntimer Banka. 402 5474. 

UNUSED PANAMA CORP. for Sale (trade 
abroad un taxed I- Bearer Shares. Com- 
plete Anonymity. Details available from 
Sox F.300B. Financial Times. 10. 
Cannon Street. EC4P 4BY. 


DO YOU WANT 
TO EXPORT? 

Two of our executives will be travelling exten- 
sively in South Africa this year and will show 
your products in reception suites in the best 
hotels in every major city in South Africa. If 
you are interested . in moving into this lucra- 
tive market please send details, i.e. brochure 
or samples of your, product — everything 
considered. 

Please contact GABTHREED LTD. 

Richard Park Building, 13 Prince’s Dock, 
Glasgow G51 
Tel: 041427 6422 


CASH ON BANK DEPOSIT 
OR THE MONEY MARKET? 
PAYING TAX AT 60* -75*? 

We are pleated to Announce that we can _ now arrange for 
individuals to reduce the tax arising an this investment income 
by up to 54Ka. 

This can result in net after tax income being more than doubled 
whilst still leaving you total freedom of choice in placing the 
deposit and fill! access to your funds as and when required, 
individuals with £50.000-£ 1 ,000,000 on deposit, or shortly arising, 
who would like full details of this arrangement should WRITE 
their name on a letter heading and post to me TODAY. 

Managing Director (Dept. FDA) 

Ackriil, Carr & Partners Limited 
Tricorn House, Hagley Road, Birmingham BI6 8TP 

(We regret no telephone enquiries can be accepted ) 


BUSINESS INTELLIGENCE WORLDWIDE 

We offer a single source International Information Service for all 
business requirements. From supplying meaningful credit reports to 
the collection of your overdue receivables. We supply the facts on 
your competitors' international pricing policies, as well as providing 
you with sales opportunities from around the world. If requested 
we can advise on the state of play of your contract negotiations 
anywhere in the world. 

For details telephone England (9274) 20773 or telex 925859, or 
Switzerland telephone I25M1.18 telex 59160. 


SWANSEA AIRPORT 

AVIATION OPERATORS SOUGHT 

Proposals are invited from aviation companies with the capacity to 
provide either (a) an air-taxi service or (b) summer pleasure flight 
facilities or both based at Swansea Airport from Whitsun 1982 
onwards. The City Development Company is willing to consider 
financial support terms for an initial operating period. Proposals 
are required by 7th May 1982. 

Service specifications are available from: 

The Development Director 

SWANSEA CITY DEVELOPMENT COMPANY LIMITED 
GUILDHALL, SWANSEA SA1 4PA 
_. .. or ring. 0792 50821 Ext 2127 for immediate despatch 


FINANCE FOR THE 
DEVELOPING COMPANY 

Obtain details of our 

FACTORING AND INVOICE DISCOUNTING SER VICE 

ARBUTHNOT FACTORS LTD 

» Breeds Place, Hastings, TN34 3DG 

Contact: S. E. Finch Tel: 0424 430824 
or Telephone: Leeds 0532 444578 

London 01-638 1301 Manchester 061 -236 9777 

Birmingham 021-454 7962 Nottingham 0602 598821 
Newcastle 0632 614545 Bristol 0272 279555 



DESIGN COMPANY SEEKS INVESTOR 

Knowledge of fashion and UJC/overseas garment 
manufacturing essential. ’• 

Write Box F.3141, Financial Times 
10 Cannon Street, London EC4P 4BY - 


A FINANCIALTIMES SURVEY 

SMALL BUSINESSES 

TUESDAY 22 JUNE 1982 

The Financial Times is planning to publish a survey cm Small 
Businesses on the above date. The provisional editorial 
synopsis is sec out below. 

INTRODUCTION Small businesses have now been at the 
centre of attention in most Western countries for several years 
and there is no sign of this interest slackening. In the TJK, as the 
recession has deepened, policies aimed at encouraging the 
creation and the growth of small businesses have been 
developed hy the flnBPmmmfj fi nancial ?rts r?mrfnn$anrf I qt gg 
companies. But too much should not be expected of them in 
the short term. Abroad, countries like France, Canada and the 
US have adapted their policies and initiatives. 

Editorial coverage trill also include: 

. GOVERNMENT POLICY 

SOURCES OF FINANCE 

FOREIGN EXPERIENCE 

SOURCES OF HELP; 

. INCLUDING PROPERTY AND 
REPRESE NTATION 

Copy date: 8 JUNE 1982 

For further information and advertising recta please contact: 

^ _ John Wisbey 

Financial Tunes, Bracken House, 10 Cannon Street, London EC4P 4BV 
Tel: 01-248 SQQO Ext. 3234 Telex: 885033 FTNTIM G 

Tfcesize, contents and publication dates of surveys in the Financial Tancs 
are subject to change at the discretion of the ™ es 


















USINESSES FO 



FOR SALE 

Subsidiary Company’s 
Fully Equipped Works and Depots 

MODERN FREEHOLD 
OFFICE BLOCK 

STOCK HOLDING 
CIRCA £1.4m. 

Comprising 

RANGE OF PROFESSIONAL AND DIY TOOLS, 
AUTOMOTIVE, ENGINEERING, WOODWORKING, 
GARDEN and others. 

Possibility of Trade Marks 

FURTHER INFORMATION CONTACT: 

JOINT LIQUIDATOR or LIQUIDATORS' AGENTS 


M. C. WITHALL F.C-A. 

THORNTON BAKER 
FAIRFAX HOUSE, 
FULWOOD PLAGE 
LONDON WCIV6DW 


EDWARD SYMMONS & 
PARTNERS 

56-62 WILTON R0AD } 
LONDON SWIV IDH ’ 


01-405 8422 01-834 8454 


Storey Sons & Parker 

. w • ‘ CHARTFRfr) ’iliffVFYORS 


OLD ESTABLISHED JEWELLKB Y BUSIN ESS 
POE SALE AS A GOING CONCEBN 

NEW LEASE OF MAIN PBKMISES IN PRIME LOCATION IN 


v. - 7 * • an u#; ,'fe » j C 


TURNOVER AST. £600.000 STOCK AST. £‘4M 
GENUINE ENOOISIES TO SOLE AGENTS {REFERENCE RE.) 


I'j* .VyiiHiotKEtn Hous®, New Bridge Street, Newcostl* upon Tme ,\- 
.T«lephona; M32 3262? 1,(10.. Jines),..-. 
o^o'Tt Middlesbrovigt. Morpetti.fr SlokesJey- • - 


Engineering Company for sale 

Precision Engineering Company — turnover £1.5m plus 
Net profit before adjustments over £400,000. Net asset value 
£1,750.000. Principals & agents on behalf of disclosed principals only 

Write Box G79fO, Financial Times. 10 Cannon Street. EC4P4BY 


STRUCTURAL STEELWORK 

Company in S.E. England for sale 

Very experienced in structural steelwork and ocher mild steel 
- fabrications. Well equipped 25,000 sq ft factory 
Current turnover £600,000 per annum 
Write Bdx G7908, Financial Times, 10 Cannon Street, EC4P 4 BY 


Export 

Packing Company 
For Sale 

A Small Export Packing 
Company and Case Manufacturer 

* Ministry approved. 

* Based in London. 

* Experienced, loyal and 
willing workforce. 

* Modern freehold premises. 

* Currently loss making but 
good turnaround potential. 

* Tax Losses Available. 

Further Information: . 

A J Lee, Touche Ross & Co., 
Hill House 
1 Little New Street 
London EC4A 3TR 
Tel 01 353 8011 Telex 261064 


WELL ESTABLISHED 

FAMILY COMPANY 
FOR SALE 

Directors /proprietors of 
profitable ‘family company 
supplying equipment to the 
catering industry, seek sale of 
Central London business as 
going concern. 

Write Bo* G7B81. Financial Timet 
JO Cannon Stmt, EC4P 4BY, 


COMPANY 
FOR SALE 

EASTERN COUNTIES BASED 
GEAR AND PUMP. 
MANUFACTURING COMPANY 
FOR SALE 

Two wen equipped adjoining 
lactones including comprehensive 
heat ircnimuni department. Total net 
area approx. 6Q.OT0 oq It. Very 
valuable lease. Net assets exceed 
E*«m. Tax losses. 

Principals only plBase 
Write Bo* G791B, Financial -Times 
10 Cannon Street. EC4P 4BY 


FOR SALE 

Manufacturer . of . decorative and 
other types ol lamp will consider 
offers for the whole of the sharo 
capital ol Hie company. Old estab- 
lished business in West MidlBnds 
with a wide product range. Turnover 
ESC0.000 opprox. Write to: 

M. a. Uovd. Centre City Tower 
7 Hill Street Birmingham 


HOTELS AND LICENSED 
PREMISES 


CHR1ST1E&CO 


SUPERB LUXURY HOTEL 
ST. LUCIA, WEST INDIES 

98 eir-cpndittancd beachside bed* 
rooms faff bath cn suite]. Restau- 
rant for 150. 2 Bars. Waterside 
Restaurant, Swimming Poof, Hood lit 
Tennis. 16 acres grounds, p.p. 
further 60 Bedrooms. Trade details 
on application. Price S3m or offers. 
Meal lor time-shore development 
APPLY: 32 BAKER STREET 
LONDON, W1 . 

TEL: 01-486 4231 


FOR SALE 

IN THE NORTH OF ENGLAND 

within a single corporate 
structure 

1. Substantial Residential Property Portfolio consisting of several 
hundred flats, houses and garages let at modest rentals. 
There are also several shops. 

2. Highly- profitable and well-managed Garage selling over two 
million gallons and several hundred cars per annum, with profits 
in the region of £300,000 per annum before tax. 

3. Finance Company. 

Would appropriate principals only please write to: 

David Kroli, Sedley, Morris 

Chartered Accountants 
40 Highgate West Hill, London N6 6LU 


GOLF CLUB MANUFACT 
Established 1881, LEVEN, FIFE. 

Wbrld famous family business of 

GEORGE NICOLL OF SCOTLAND 
Orders in hand and with trade and other 
business outlets throughout the UK, Europe, 
USA, Ehr-East, Australasia. . 

Skilled labour force available. 

Present management willing to continue.. 
Spacious and specially adapted works, and 
office premises with plant and machinery, 
Thmover ,£360,000. 

- Further information and particulars 
from-Mrs Anne Bryce, 




1 J 


\i 

ill 


1 

u 



iBi 


CABINET- 
FBRNITORE l 


FOR SALE 

UNG AND CONTRACT 
^FACTORING BUSINESS 


Established by the present proprietor 20 years ago in a rural 
setting near to Bristol. Consistently growing profit record with 
1981 audited profits of £85,000 before proprietor’s remuneration. 
Net assets £70,000. Price required £200,000 — arrangements made 
for up to 75% support from recognised source of venture capital. 
Proprietor wishes to develop his inceresr in an unrelated hobby 
but if required will act as a genuine consultant. 

Full details from vendor's agents: 

BATH SECURITIES LIMITED, 

Orchard House, 13 Pierrepont Street, Bath. 


:29AbercrombyPtece,Et&ibugfiEH36UE.TeL03f-55721tI 


KENT— RETAIL D-I-Y 

Established by the present proprietor 13 years ago 
in South-East seaside town. 

Comprising four adjoining shops, with 80ft window 
frontage. Directly facing major multiple super- 
market Sale due to ill health of proprietor. 
Substantial turnover. 

Write Box G.7901, Financial Times 
10, Carman Street, EC4P 4BY 


FOR SALE 
SPECIALIST COMMISSION 
FINISHERS AND DYERS 

The business of a company established since 1897 

* Located near Nottingham with easy access to Ml , 

* Freehold site of 8 acres 1 ■ • ; ' 

* Modem .specialised plant and machinery for Valour*, 

towelling and knitted and brushed fabrics ' . 1 

* Turnove r for 1981— £2. 9m - 

* Long established customer connections 

For further information please contact: 

A. R. HOUGHTON, 

TOUCHE ROSS & CO, 

HILL HOUSE, 

1 LITTLE NEW STREET, LONDON EC4. 

Telephones 01-353 8011 Telex: 261064 


GREETING CARD 
C0MPA58Y 
.FOR SALE 

A well known UK Greeting Card 
Company supplying direct M rho 
retail trade, on computerised stock 
control and re-order ticket systems. 
Reply in the first instance to: 

S. C. Burden 

GREY ADVERTISING LIMITED 
215-227 Great Portland Street 
London WIN 5HD 
Replies will be forwaided to 
our chent 


LIFE AND PENSIONS 
CONNECTION FOR SALE 
OR MERGER 

LONG ESTABLISHED 
LONDON & SOUTH EAST 
Write Box G78&I. Financial Times 
JO Cannon Scree:. £C4P 4BY 


EAST MIDLANDS 
CIVIL ENGINEERING 
COMPANY FOR SALE 

Sales over £2m. Substantial Asset 
Backing. Established Tender Lists 
Pfejse contact the Managing 
Director. Boa G7895 
Financial Times 
10 Cannon Street. EC4P 4BY 


RADIO TV ELEC. 

RETAIL SHOP 

TV RENTAL SALES & SERVICE • 
Very old established business, mam 
road SW London. Freehold avail- 
able or wifi grant new lease. Ownor 
retiring. Approx, capital required 
inc. stock £120.000. Freehold extra 
if required. 

Write Bor G7897. Financial Times 
10 Canon Street. EC4P 43 Y' 


RARE OPPORTUNITY 

Important Freehold Motor Trade 
Business with a major Franchise 
and a very high volume pel ml tore- 
court. Situated jus; -vest of London. 
Anticipated transaction in excess 
of Cl million 

Enquiries in y. riling . 
t principals only f to: 

Henry Berne- 1 

11 Old Burlington St. London, W1 


FOR SALE 

DUE TO RETIREMENT 

Small limited company 20 years 
old producing one e*ce)lent and 
prolitahTe lute of moiorcar cnernicai, 
fine export record and undeveloped 
home market with or v. it Lout well 
appointed 2 room London of. ice 
appro, 5SCI so ft. 2 telephone lines 
and tele*. Renewable short lease. 

Write Bex <37300. s iror.ci*l Times 
10 Cannon Saee:. EC4P 4EV 


FOR SALE 

Successful and profitable dry dock 
and unqineanng company engaaed 
in North Sea oil related activities 
for sale. Offers around £500 000 
Invited. Genuine prospective pur- 
chasers only ploo-.e. 

Write Box G7904. Financial Times 
10 Cannon Street. EC4P 4SY 


GARDEN MACHINERY 
BUSINESS . 

jit ncll-known AO>mc*i!S. Turnover m 
the region ol £350. ?C3. Cross nrofil 
in excess of £130.000: locsiod in 
West Midlands. 1O.3G0 in It Mcared 
by long lease. Business man al ev- 
noriencc- can obtain profitable enter- 
prise. Offers inrlrcd j cursor tar Hie 
limited company, or tor geodwn. fix- 
tures and fittings and stock at valua- 
tion. etc. Write 90* G.790S. Financial 
Timm. 10 Cannon Street. London 
CC4P 4BY. 


WINE SHOP 
LONDON W.2. 

Turnover £150.000 - Leasehold 
Going Concern inch fix. & fit. 
£30.000 5AV. 

Ring Watson 01-723 6897. 


TRAVEL AfaEMCY 
FC8 SALE 

Established 1965 ic norm west 
coastal area with excellent business 
housp contacts country wide, gen- 
erating high volume- crmmerciaf 
traffic- IATA, ABTa.-'.ar.d ATOL 
licences. Ain ins Trauiconi system. 
Wrtf* Box G7 912. Fiqar.cisi Times 
70 Cannon Street, EC4P 48Y 


SAN FRANCISCO. Long established sales 
■ agency. Principal in -Lcirdon re seek 
U.5. oeportur.nica. Write Ecx F-352S, 
Financial Times, 10 Cannon Street. Lon- 
don. EC4P JBY. 

UNIQUE INVESTMENT OPPORTUNITY In 
Florida Sunbelt. 3 Murelr.g Hemes re- 
turning 13’- on lease nor annum. 
Price: 57.000.000. Writ* Bov G.7891. 

Financial rimes. 10 Cannon Street. Lon- 
don £C4P 4GY. 

SALES OFFICE BRUSSELS — Telephone 
onwrerlng until company name. Order 
taking. Domiciliation. Tote* Service. Ten 
protesting, Office rental. DYNAMIC 
OFFICE SERVICE. ». M U Tanqnc 2 
H. 1160 Ennwlv Tel: 6t>O.J4.9D. 
THex 2S3B7. ■ - 


FOR SALE 

LIGHT5IDE BUILDERS 
MERC H ANTS-DJ.Y. 
CENTRE 

SOUTH DEVON - Turnover Elm 

Leasehold Property 
Approx. 50.000 sq ft 
Write Box G7B02. Financial Times 
10 Cannon Street. EC4P 4BY 


TRAVEL AGENCY 
. FOR SALE 

Established 1965 in North West 
Coastal area with excellent business 
house contacts countrywide, gen- 
erating high volume commercial 
ire die. IATA. ABTA, end ATOL 
Licenses. Airline Travicom system. 
Write Bo* G7907. Financial Timas 
10 Cannon Street. EC4P 4BY 


BUILDING BLOCK 
MANUFACTURING PLANT 

An excellent opportunity occurs to 
acquire e long established factory 
located in South Wales producing 
insulated building blocks. Good 
priori t paten fra/ from existing sales: 

Write Bax G7903. Financial Times 
10 Cannon Street. EC4F 4BY 


HIGH PRECISION 

ENGINEERING 

COMPANY 

T/0 £1£m Profitable 
Location: Midlands 
Principals only apply 

Write Box G7877, 
Financial Times , 10 
Cannon Street, London , 
EC4P 4BY 


Established 

AQUATIC 

LIVESTOCK 

lnportere & Distributors 


Engaged in Import, export and 
trade supply of Tropical Fish end 
Cold Water Pish. Modern, fully- 
equipped end - well -situated 
premises. Sates about £460,000 per 
annum. 

PRINCIPALS ONLY WRITE 
Box G7392, Financial Times 
10 Cannon Street. EC4P 4BY 


TAX LOSSES 
£230,000 

IMMEDIATELY AVAILABLE 
A private limited company 
engaged in the leisure industry 
with substantial assets for sale 
as a going concern. Assets and 
tax losses available for outlay of 
£I00J000. Present management 
can continue to Operate if 
required. 

Write Box G7911. Financial Times 
10 Cannon Street. EC4P 4BY 


FOR SALE 
WEST MIDLANDS 
HAULAGE CONTRACTOR 
With wide range of customers 
servicing most of the UK. 
Turnover for the current year 
predicted at £600,000 and. trad- 
ing profitably. 

For further details write, 
quoting reference NC. to: 

K. G. WHITE, THORNTON BAKER 
Kennedy Tower 
St Chads Queensway 
Birmingham B4 8 EL 


FOR SALE 
SPECIAL STEEL 

stockholders; 

Established four years ago, . 
operating from modern leasehold 
premises in the South Midlands- 
servicing London, and the' ;■ 
Midlands. Turnover for the ■ 
current year expected to 
be circa £2.5 m. 

For further details write. 
quoting reference BSS2. ro:_ 
K. G. WHITE. THORNTON BAKER 
. Kennedy Tower 
.. St Chads Qusansway 
. Birmingham 84 fiEL r- • 


PRINTING AND STATIONERY 
COMPANY 

FOR SALE i - 

Well established business of wholesale and manufactory* .stationers 
and general printers. Operating from valuable freeqoraxnd 1 leasehold 
premises in London including two retail shop* Current turnover 
approx. £600,000 per annum, fully trained staff. Good potentiaL 

All enquiries from Box G79T5, Financial Time* 

10 Cannon Street, London EC4P 4BY ■ 

Our ref AJR/EF 


BUSINESSES WANTED 


LAND/HOUSE 
BUILDING COMPANY 

REQUIRED 

John Maunders Cons&uction Ud.. operating tor over 70 years and 
now one .of trie largest house budding companies in the North West is 
seeking to acquire prime residential land (5 acres up to 50 acres) 
with outGne or detailed planning conseoL 

Alternatively to assist our expanmon programme we are keen to 
acquire awe]l established house buWng company with a proven track 
record and a substantial land-bank anywhere in ffie U.K. Existing 
management will be retained and substantial lunds are available. 

AH propositions will be thoroughly investigated and quick decisions 
given. 

Principals onty reply in strict confidence ta- 
Jobn W. Maunders Esq., Chairman, 

JOHN MAUNDERS CONSTRUCTION UMCED 

P.O. Box 7. 554 Baton Road. Stretford. Manchester M32 9QH 

Tef: 061-743 3266 Telex: JMC G 6691 1 1 


O Maunders 

homes forgood living 

7 . ; BUILDERS CF QUALITY HCMSS'FOR OVER 70 YEARS 


FORK TRUCK SERVICE 

AND HIRE COMPANIES WANTED 

We wish to acquire established companies in London 
and the South-Eastern Counties. Management 
continuity is a prerequisite. 

Write in confidence to Box G.7906, Financial Times 
10 Cannon Street, London EC4P 4BY 


INDUSTRIAL SERVICES 

We are a successful rapidly expanding international group 
providing on site services to process industries seeking to expand 
our activities in Europe by acquisition of companies in related 
industrial service or distribution sectors. In certain countries 
joint ventures with existing subsidiaries could be considered. 
If your company has good management and development 
potential but needs additional finance and wider international 
outlets we would like to talk to you. 

Write Box G79-13. Financial Times 
■10 Cannon Street , London E C4P 4BY 


WANTED 

Established Company seeks to acquire 

AIR CONDITIONING 

AND/OR 

BUILDING SERVICES MAINTENANCE COMPANY 

Operating in the Midlands, North of England or Scotland. 
Please write in stria confidence to: 

Box G785Z, Financial Times 1 10 Cannon Street, London EC4P4BY 


TROUBLED LIGHT ENGINEERS 

DON’T CALL THE RECEIVER 
CALL US! 

Although our clients would prefe r a more viable 
company in the LIGHT ENGINEERING field situated, 
close to a major airport, they are not averse to 
looking at a business anywhere in the UK which is 
currently short of management impetus or just good 
old-fashioned cash. 

All replies in strictest confidence to : — 

C. N. Kenyon jgiV 

•KENYON BUSINESS SERVICES LTD. 

117 King Street 

Knutsford, Cheshire /gg&SjH 

Tel: 0565 52586 


Public company # 
wants private talks with 
property development 
company or housebuilder. 

Our client, a majorpublic company, wishes to acquire a 
small or medium property development company or residential 
home builder (around 50 units per annum). Anywhere in UK. 

To find out more contact Jarroms (0533) 530111. . 


WE HAVE AVAILABLE 
in Wolverhampton a factory 
building of 10.000 sq ft (with cranage) and 1000 sq ft office accom- 
modation on a freehold site of over two acres. We wish to require 
a profitable company able to use the site to advanage. 

Please write or telephone: 

MR C M. GREW, 

COO PQl INDUSTRIES PLC. 

2 CASTLE HILL. DUDLEY, WEST MIDLANDS. 

Telephone: 0384 231281. 


SUBSTANTIAL INVESTMENT CORPORATION 

wishes to acquire British companies with large profits arising (or 
due to arise) from the sale of asses, in appropriate cases we 
can offer prices substantially in excess of net asset value 
. Write Box C7862, Financial Titties 
10 Cannon Street, E C4P 4RY 


PROPERTY OR RELATED COMPANIES WANTED 

Substantial Group seek to acquire controlling or major shareholding 
in ' companies related to housebuilding, development and with 
property portfolios and land banks. 

Write in confidence to Box G7899, Financial Times . 

10 Cannon Street, -London EC4P 4BY 


WANTED :.v; 

We seek to acquire, : I*- 
CONTRACT HIRE- 
COMPANIES 

currently operating car and Van 
fleets in excess, at iOO.unita- 

Please write -in the strictest . 
confidence ro; ... 

Tho Managing Director - - . 
'■ COWIE CONTRACT HIRE LTD 
Hylton Road. Sunderland 
Tel: 0783 «122 


PUBLIC COMPAHY 

WISHES TO ACQUIRE , 
PRIVATE- PROPERTY 
COMPANY BY CASH ' 
AND/OR SHARE EXCHANGE 
'Brief details to the Managing 
Director, Box G7B42. Financial 
Times. 10 C etmon St, EC4P 4BY 


Major Overseas -Co m p an y 
seeks to acquire established 
PHARMACEUTICAL^ ’ 
MANUFACTURING- Af® 
DISTRIBUTING COMPANY 

Write Box <57896. Financial Times 
10 Caonoo Szreec. EC4P 4BY 


CONSUMER BUSINESS 
WANTED 

Principals seek interesting business 
such as Finance Company, Mall 
Oroer, Check Trading Company, 
etc. Any size propoohfon and 
situation considered. -Funds avail-' 
able. Confidentiality assured. 

Write Box G7894, Financial Times ; 
70 Cannon Streer. £C4P 4BY 




Stit t ite 'a 'i w W i 


ENGINEERING COMPACT 

Principal whites to acquire- ovtrtstoV 
or obtain 9 tub) ta nttal cavity hcWtop 
in. a small to medium sized en gin eer;. 
Ing company designing: man u f a ct ur ing 
and selling end products, preferably in. 
tbe advanced tochnolosy or high skiff 
sector and desirably but eoe eKUnfrety 
located In Scotland. -- ; 

Pfeue reply in tff». strictest .aptdem 
w: Box G.7914. Financial Ttme. 
10. Cannon Street. London CCAF 40Y. 


WANTED 


WORD PROCESSORS 
WANTED ~ 

Top prices paid for- • 
good used m ach ines ■ j 
AXJTOTYPB. ; 

Haywards Hea®„ . 1 

(6444) 4I44S4- 






































Financial Times Tuesday April 27 1982 


THE ARTS 


Art and the academic 


Barbican Hall 


London Symphony Chorus 


One of the greatest changes 
to affect what one may 
categorise as the art scene in 
the post-war era has been the 
proliferation of art history as 
• a subject The British estab- 
lishment always had more than 
a degree of mistrust for this 
foreign importation, strongly 
Germanic in origin and 
approach, and the early . years 

of the Courtauld* Institute- of 
Art in the 1930s must have been 
little short of heroic. 

I always remember the legend 
at the National Portrait Gallery 
that any connection with the 
Courtauld automatically ex- 
cluded a candidate for a post 
in the eyes of its then, director. 
Sir Henry Hake. He would 
turn in his grave to see the bur- 
geoning of this subject through 
the universities of this country 
in the post-war period: London. 
Oxford, Cambridge, Edinburgh, 
Glasgow, Manchester, Leeds, 
East Anglia, York,, to name but 
a few. Judging from the fact 
that Bristol was the only one 
so far to go under in the recent 
cut-backs, they are pretty un- 
sink able. 

It is still too early to assess 
the effects of all this on our 
society as we move towards the 
close, of the century but the 
advent of a small army of art 
historians must surely be a pro- 
found one. We only have to 
open a saleroom catalogue to 
see its impact in the massive 
entries that can accompany each 
item, unknown in the 1950s. 
Christie's even nuts out an ad- 
vertisement listing the publica- 
tions of its art historians! 

But this is only one aspect of 
their colonisation. Obviously 
like any other acadamic disci- 
pline, art historians promote 
their own subject with fervour, 
so that it has even entered the 
curricula of some comprehen- 
sives. That the general level of 
scholarship has risen cannot be 
denied and this huge advance 
of knowledge is certainly 
greatly to be welcomed. But it 
can bring less fortunate conse- 
oi'cnces. A handy parallel 
might be the arrival of history 
as a fully hedged discipline in 
the modem sense in the last 
century, the shift from the age 
of tiie literary historian such 


-as Carlyle or Macaulay writing 
for a broad public to the world 
. of Stubbs and Froude, when it 
had . become a codified closed 
field with complex schools of 
thought, learned journals and 
in-fitting. 

Art history has got to pre- 
cisely that stage in this country. 
Fifty years ago it did not exist 
as an academic discipline. Now 
it is triumphant and everywhere 
one senses the tensions that this 
bits brought - 

The effect is eminently trace- 
able in the first place on art 
magazines. Those which cater 
for the academic world un- 
ashamedly such as The Journal 
of the Warburg and Courtauld 
Institutes and Art History can 
be put to one side. They are 
publications designed as 
vehicles for extreme erudition 
on a non-profit basis. 

It is those which occupy what 
might be categorised as the 
middle ground which are most 
disorientated. The Burlington 
Magazine, Apollo and Con- 
noisseur, publications which, 
although used by the specialist 
have or had their roots in the 
general reader and the collec- 
tor. They depend on sales and 
advertising revenue to survive. 
Any examination of a run of 



The art magazines that, although used by the specialist, have their roots in the general reader and collector 


ground which is swiftly becom- Michael Jaffd convening a con- 
ing lost. More than once in the ference at Cambridge to open 
last few years has Connois- up interplay between art history 


seur been 
it has 
recaptured 


re-cast but as yet 
not successfully 
that ground. The 


Roy Strong reports on a current crisis of 
criticism 


these over the last 30 years 
will show the effects of art 
history. 

The level of informed art 
scholarship has rocketed as 
rapidly as the level of genera? 
comprehensibility has plum- 
meted. Not only do the subjects 
dealt with vie with each other 
in their obscurity, but the 
language in which they are 
written and the assumptions 
made by the writers betoken 
ar! historian talking to art 
historian. No. there is nothing 
wrong with that but there must 
be a connection between this 
and declining circulation. 

To a degree, those magazines 
used to represent a middle 


departments and the museums. 
It was a frosty occasion with 
many of the museum old guard 
tossing less an icicle than an 
iceberg across die table. The 
matter went into abeyance until 
well on into the 1970s, by which 
time the museums had been 
colonised. The recent formation 
of the Association of Art 
Historians represents the con- 
clusion of the saga as its mem- 
bers straddle both prof ess hj ns. 

This has bad many effects. 
Let me take one. A critic, who 
is the director of a museum. 


Of coarse art exhibitions can 
and should advance art his- 
torical knowledge but such 
exhibitions, maintained and 
paid for by the tax payers 
should not be art' historical ego- 
trips. There is nothing wrong 
with delighting, informing, even 
irritating an informed public 
Too often, however, one has 
seen them used as vehicles by 
scholars to bring together in- 
different works of art that they 
were too lazy to go and see. The 
result as far as one recent 
exhibition of a major British 
artist was to accentuate his 
mediocrity. And nothing is more 
depressing than exhibition cata- 


variation is right but the 
formula has been wrong. The 
effect on art galleries and 

be enormous because their opened a review in The Times J«gues wto jjj ■ “jJ? * 
founders can never have en- recently by stating that exhibi- gesture to the ordinary visitor, 
visaged that they would eventu- tions had no right to be staged These are but a few of many 

unless they adsanced art flares I could send up. indicators 
historical knowledge. What an that art historians (I count 
astonishing statement! Heaven myself as one) have wider 
protect us. It would have meant obligations than an obsession 
in the case of the V and A, for with self-status. This is no plea 
a start, that none of the great for populism but as always for 
series of environmental exhibi- 
tions in tiie 1970s would ever 
have been staged and the Boiler- 
bouse, with its preoccupation 


aliy be staffed by art historians. 
In the past. curatorial staffs of 
the national collections were 
generally grounded in some 
branch of the humanities, 
history, literature or the 
classics and when 1 started my 
career in the mid-1950s there 
was a distrust .of art history and 
art historians in museums. 

The feeling on the whole was 
mutual and it was not until the 
late 1960s that I remember 


balance. More art historians 
could mean less and not more 
enthusiasm and understanding 
of art by the educated public. 


with the mass produced arte- If it does, the coming to age of 
facts of now, would be closed an history will have paid • a 
tomorrow. terrible price. 


Teatro dell’ Opera, Rome 


MaJipiero revival by WILLIAM WEAVER 


One of the most famous 
-events _-4n_the history of tbe- 
Teatro dell’ Opera is the Italian 
premiere of Gian Francesco 
Malipiero’s La faoalo del figlio 
cambiato on March 24 1934. It 
was to have been a gala event: 
the libretto by Luigi Piran- 
dello, then at the peak of his 
fame, guaranteed an intellec- 
tual interest. Two successful 
productions of the opera in 
Germany shortly before the 
Roman debut, seemed reassur- 
ing as far as the musical out- 
come was concerned. And the 
political loyalty ■ of both the 
composer and _ the librettist 
ought to have ’ meant official 
protection. And yet, though . 
Mussolini was present at the 
opening, with several leading 
party figures, the performance 
was a .fiasco. Only the firm per- 
suasion of the secret polioe, 
abundantly present in civilian 
clothes, quelled tiie demonstra- 
tion and allowed some of the 
public to applaud at the end. 

A number of spectators 
applauded because they 
thought the opera had 
Mussolini’s support. They were 
wrong, and- the idea made the 
dictator so angry that he 
banned any further perform- 
ances. Meeting Malipiero a 
short time later, he said to 
him: "Vou have set the libretto 
of a cretin." When Pirandello 
won the Nobel Prize the 
following November, Mussolini 

—at Icastinpublj^-^va^ttor^ 

THEATRES 

■E&4 MAS Sa/Ot 

SE 3962* 7.30. ThUf 6 

0. Pl.vs Rank HoJWjv M«y 5. From 
9 Mir OLIVER COTTON. ELIZABETH 
UINN CHILDREN OF A LESSER GOD. 
ntil May S TREVOR EVE (MlehKl R«K 

tbstltuUd for T IFF El* *•» TbuTI MlB 

> April*. 6 May ONLY*. 

OWYCH. S 836 6404. CC 379 6233. 
yt a Short MIMB. ALAN HOWARD, 
nt Actor of the Year In the fgc 

r r« Mlnnlnn OTOdVEttOn Of GOOD- 

ETtTm sharp w<*f a 


ASSAOORS. 836 1171- 6™ 

6061- TkB 66-50. tS-SQ, £4.30, £g. 
tuML ft Klstx Tqh 3 A Sit 
CM ARY LEACH. DAVID SWIFT- 
CHARING CROSS ROAD Or HMen. 


to. Shaftesbury .Are- CC 01-437 

kD M r«of'£.Mf , AV?KSo5mi ? s 

\2j4ySCAS0in GREETINGS. 


LO VICTORIA <®f0- V,CtO ji i ? r 5TcL 
SOUND OF MUSIC. _ .MICHAEL 


TTON/'hOHOR BLACKMAN. JUNE 
NHILL. JOHN BENNI 


jhill. John -ENNETT. Londan'* 
’star Studded Mia teal. «£» 7.30. 

SJ 

IS 

SOUND OF MUSIC LO**®"'* 
l— — * n (.w |A}t3 from £2i50 

“SrfiSjffV «Sr. NOW BOOKING' 

EPT 16. FETULA CLM* RETURNS 
I MAY'S. 


iiA BESTALfltANT THEATRE. 

jSTCJiSbNirtL G5 
SJSS3&I& aSTwgBjSi 


LHBICAN. 01-628 6793. CC 01 -«B 
1891 f Mon-Sat- 1030 am-8-OOOTn. 5un 
2 30 pm-s.00 om>. za hour in“- 
|:«l K9S. ROYAL SHAKESPEARE 
toMPANT. Personal ft telcptum book- 
ngopen for RSC* FJwi « Mav- 

7 July) »t the Barbican. Seats anil toj 
IENRY IV PART It Miy lS, 14.16 
ind manr p*H» I" J 


Re at the Plead 1 1 Iy 


Jane & July. RSC 


lRBICAN HALL. 8art>k*n CjKj» ECL 
C 01-6M 8891. Rentva tlpflS . 0 1 -628 
70S. Thura 7.30 an. An |nd>| wllj 
eu MarMi, bar orchestra. Statitr* and 
Hdil Guests. Frt at 8,00 ant. Qtv o* 
*£ton SinfMta, Hictanl hmk tc con - 
urtor. Jack Bynur cUrtnA ForttOi 
rite of Dances from The Faery Queen- 
•us ban Williams-- Prelude tm _Rhgg 
Mdre. Fieri: Clarinet, Cowyrtp. erttuy 
, Smote Srmphe w- F orced 
i minor. Hurt Introduction and Aijtgfft 
k SBiHtBriSvme Maw Mil riuiubiw 


appreciative. But the opera was 
not .restored, to. favour— . ... . 

§0 for decades La janola del 
figlio cambiato and its tem- 
pestuous Roman premifere have 
retnsined a legend, and mimic 
historians have suggested that 
this was an unjustly neglected 
masterpiece. It was logical 
then for the Teatro dell’ Opera 
to present it this year, the cen- 
tenary. of MaJipiero ’s birth 
(and the presentation was all 
the easier since a production 
existed, all ready, created in 
Palermo in 1980). This revival 
is also timely, since Italy is in 
the midst of a big debate about 
Italian culture in the 1930s, 
sparked by the mammoth, pole- 
mical “Anni Trenta” exhibition 
which has huge crowds in 
Milan. 

I hate to agree with Mussolini 
about anything, but if Piran- 
dello’s libretto is not quite 
cretinous, it carries its wilful 
simplicity, at times, to the point 
of simple-mindedness. In call- 
ing the story **a fable." the 
cti-ametiFt obviously meant to 
give the simple tale a universal 
significance: but the poverty cf 
the language somehow robs the 
jo vc la of that mystery and 
wonder present in the Piran- 
dello masterpieces. 

Malipiero. at best an intimate, 
delicate composer, set the text 
with such respect allowing 
almost every word to be clearly 
articulated and understood, that 
the music attracts scant atten- 

CAMBRIDGG. CC 01-836 1488/6056- 

7040- SUSANNAH YORK. TOM BELL 
TOM BAKER. RALPH BATES. PAULA 
WILCOX ft IRENE HANDL In HEDDA 
GABLER. Red srler pren trom Mrr 17. 

Opens M*v 20 lit 7 cm. Eras 8.0. TTiW. 
Sit 5.0 & 8.0. Grp bks* 836 2379. 


tion. seldom holds the ear. He 
.is at his- best in rhe. several- 
orchestral interludes, but in the 
end the piece makes a slight 
impression, and one wonders 
what, after alt the 1934 audi- 
ence made such a fuss about 

The production currently at 
the Teatro dell’Opera was 
designed by Agostino Pace and 
staged by Virginio Puecber. 
Though handsome, the staging 
is perversely against the spirit 
of the work. Stripping away 
any fairy-tale atmosphere, and 
denying the Mediterranean 
warmth that is essential 
i e*necially in the last act), pro- 
ducer and designer have 
created a cold, NoTdic atmo- 
sphere. Except for the central 
figure — the mother of the 
tl tie’s changeling sod — the 
characters are turned into 
grotesques, like something out 
of a Brecbtian cabaret (there is 
even the inescapable Brecbtian 
half-curtain at one point). The 
radiant prince of the denoue- 
ment is an effete Riviera play- 
boy with a Gloria Swanson 
cigarette-holder. 

Musically, the performance 
was on a high level. Gian an dr ea 
Gavazzeni, always at his best 
when defending lost causes, 
conducted with total conviction 
and got some crisp and sensi- 
tive playing from tbe Rome 
orchestra (the brass, which 
are important ’■ in the score, 
men^^specia^or^^praiseL 

GREENWICH. S CC 01-858 7T5S - tjgL 
Inns 7.45. Mad Sat 4.0. BEAUTIFUL 
DREAMER bv ROV Hudd. 


As thp mother. Radmila Bafco- 
cevic looked- perhaps too. -Lady- 
like for a Sicilian, peasant 
woman; but .she sang with 
passion and was responsible for 
the only moving moments of 
the evening. The many other 
roles, though musically un- 
distinguished. were all capably 
handled; and The tenor Ezio Di 
Cesare did his best to make the 
Prince attractive. 

There are indications of a 
movement aiming to revive 
interest in the “gecerazione 
delTOttanta," the gToup of 


composers born in the 1880s, 
headed -by • Malipiero and 
Pizzetti. They were, for the 
most part, men of culture and 
taste, of wide-ranging musical 
interests, and considerably less 
provincial than the preceding, 
post-verismo generation of 
Ginrdann ?nd Cilea. But. with 
a few exceptions, their stage 
works have not proved effec- 
tive: and the occasional oppor- 
tunities to hear a MaJipiero 
opera do not suggest that any 
of them will firmJy enter the 
repertory. 


by MAX LOPPERT 


Doubts have been expressed 
about the Barbican Hall 
acoustics insofar as. from 

different vantage points, they 
represent the balance of vari- 
ous instrumental combinations. 
But, from a seat in The first 
tier, the picture composed 
during Sunday’s London Sym- 
phony Chorus and Orchestra 
concert of the Mozart C Minor 
Mass as given by large-scale 
vocal and instrumental forces 

was admirable alike for clarity, 
balance, and the indefinable 
quality of presence. 

The conductor was Richard 
Hjckox, who ensured that all 
the working parts of the mas- 
sively puled Mozartian struc- 
tures were in the trimmest run- 
ning order; yet it was not his 
efforts alone, nor those of the 
carefully prepared chorus and 
orchestra, that created so 


characteristic an effect of 
Mozartian solemnity and 
Mozartian sweetness in classic 
combination. The hall made 
the difference. 

When this happens, as it does 
ail too rarely, the much-vaunted 
inconsistencies of style between 
the extant movements of the 
incomplete Mass fade in impor- 
tance; the richness that Mozart 
achieved in whatever style, he 
undertook baroque or rococo, is 
its own kind of consistency. Mr 
Hickox urged sharply profiled 
rhythms from tiie orchestra and 
organ eontinuo (excessively so 
in the double-dotted " Qui 
tolHs.’’ which seemed momen- 
tarily in danger of becoming 
becalmed at mid-point), and 
truthful intonation from his 
choristers. Yet the cleanly 
articulated manner of perform- 
ance never risked preciousness. 


The female voices were 
attractively matched — Yvonne 
Kenny returned to her most 
Blowing, limpid form, capable 
of both charm and seriousness, 
as the first soprano. Felicity 
Palmer a contrastingly fiery 
second. 

The pleasures of Mozart made 
amends for the pains— at least 
as suffered by the occupants 
of the first tier's left sector— 
of the Vaughan Williams first 
pari of the concert: in ihe Five 
Mystical Songs. all the 
eloquence of John Smne>- 
Quirk's soft singing and the 
aptness of (he choral under- 
pinning were set at nought by 
a still-photographer who. fron» 
a position at the back, crasheci 
into i he musical proceedings 
with barbarous persistence. How 
did he ever gain entry? 


Obituary 


Celia Johnson 


Dame Celia Johnson, who 
died on Sunday aged 73. was 
about to open in a new West 
End play. She was to appear 
opposite Sir Ralph Richardson, 
renewing a potent senior 
parntership tbat had been 
forged a few years ago in 
William Douglas Home’s The 
Kingfisher. Tonight’s official 
opening of The Understanding 
at the Strand Theatre has been 
cancelled and the production 
postponed until further notice. 

The parts for which tbe 
public may best remember Celia 
Johnson tend to show her in 
well-bred resistance to mis- 
fortune — in the film of Brief 
Encounter, lor example. A good 
many of the parts she played 
towards the end of her career 
followed this pattern; she was 
a determined aristocrat in 
Lloyd George Knew My Father 
(taking over Lady Boothroyd 
from Peggy Ashcroft) and as 
the Dame of Sark in the play 
of that name. 

But even then she was 
capable of rich' comedy. She 
took over Judith Bliss from 
Edith Evans in the National’s 
Hay Fever — she was never 
averse to following other 
players in good parts, from 
Edna Best on — and was so well 
liked that the play was pro- 


duced commercially for her 
three years later. 

She played Saint Joan with 
the Old Vic company, ami 
Viola: Olga in Three Sisters 
and Mme Kanevskaya in The 
Ch cry Orchard ; but most of her 
work was in what might be 
called Shaftesbury Avenue 
drama. She was in Ten M/imtc 
Alibi, and had a two-year run 
in The Wind and the Rain. She 
never felt that popular plays of 
this kind needed acting of less 
than the very highest quality. 

An expressively emotional 
actress, the feeling had grown 
over the later years of her life 
that her unique talent had been 
seriously underestimated. Her 
stage career began in 192S. 
when she appeared in Hudders- 
field in Shaw’s Major Barbara 
She was very much an actors’ 
actor, blessed with an effortless 
technique and wonderfully 
eloquent, watery eyes. 

Television made telling capi- 
tal of this later quality* when 
she was reunited with her 
Brie/ Encounter co-star. Trevor 
Howard, in Staying On. an 
adaptation of Paul Scott’s 
British Raj novel shown the 
Christmas before last. She gave 
another unrivalled television 
performance recently in 
Graham Greene's The Potting 



Shed, playing opposite Paul 
Scofield. 

She was awarded the CBE i; 
195S but became a Dame only 
last year- Her husband Peter 
Fleming, the author anc 
explorer, died in 1972. They 
had three children, one o 
whom. Lucy Fleming, is a: 
actress. 

8. A. YOUNC 


St. John's, Smith Square— Radio 3 


London Sinfonietta 


by DAVID MURRAY 


The BBC Lunchtime Concerts 
do not often run 10 ensembles 
the size of the London 
Sinfonietta. who appeared 
yesterday. In fact their numbers 
decreased steadily from their 


House of Fraser to sponsor Edinburgh 


c Si«iv s SI? 

st^THB^SlnuSfiSe b^autt! 
Tan't Ruannr.'K*fle- 


COMEDY THEATRE. S 930 2578. Credit 
r»nt bookings 839 1438. Gn» 

6061. Mon-Frl B. 00. s«t 8.15. Mete 
Tnur X- Sati 5.15- Price C2.5 0-S7.OO 
f not lultatale tor ctiUoren). STEAMING 
bv NELL DUNN. 


_240 1066. 


COVENT GARDEN. 

IS^HTSSKa C T C cn?« i3ST cgtf-ii 

BALLET ’Tornor 6 Frf « 7.60. to* 

Festival at Gcaeuo. CHeu*. 


CRITERION. 930 3216. CC 379 6565. 
Grp reduction* 836 3362. Mon to Thura 
rSo. Frl * Set 6.00 LIL4S. Plays Sink 
Holiday May 3. Over 300 MrtcrRUUMXS 
OT DARIO FO*S COM ID Y CANT PAYT 
WONT PAY! 


DRURY LANE. Theatre BoraT- K 01-836 
■ fffji. Grc Sales 379 »0b1» TIM 


PIRATES ~QF F£NZANCE. Gala prevk 


mirHEsL £ and CC 836 6243. Etci 8. 
i & SJO and 8J0. RICHARD 
todd Derren Noaoltt and Carole 
Mowlam In THE BUSINESS OF MURDER. 


DUCHESS. S CC 01-836 8243.^ Red prica 
Prrra May 10 S 1» 8.00. Coens M*v 
12 7.30. Sab cm 8.00. Fn A Sat 
6 0 A 8J0. VICTORIA WOOD and 
THE GREAT SOPRENDO In FUNNY 
TURNS. 


DUKE OF YORK'S. 836 3122. CC 836 
9B37- GroliO Wles 37S 6081. Moo-TMra 
7.45. Frt 6 6 9.13. Sa t 5.15. ft BJO. 
Sliaoa Catlovr ft Patrick Rncwt In J- P* 
. Bwihw'l KA'.TNAXAR. 


FORTUNE. 836 '2238. CC .200 0200- 
HiKttsr TtnapMO 1 ! FEAR AND LOATH- 
IHC IN LJLEWEGAS. EW1 840. Ffl ft 
Sc a ft bTPtwf May 6. opera 

May 11 « 740. Bar opens 6-bra. Pu*» 
prices. . 

GARRICK. CC 836 4601. EVM8.MS1 
WnTr SU 5 4 a. nth . HYSTERICAL 
YEAR OF THE LONGEST - RUNNING 
COMEDY IN THE WORLD- NO SB 
PEjEAU-^WETtE BRftlSSL Directed by 
Allan Dari*. Group HIR.te O wxJg? 
6061- Credit card boofclnet 930 0731- 


CLOBE. S CC 437 1592; 439 6770-6779. 
PASS THE BUTLER. Tbe new comcdr hft 
SpEyfC Idle with WILLIAM ROSHTON. 
JOHN FORTUNE. MADGE OYAtl K nd 
PETER JONES. Mtm-Thura 8.0. Frl I* 
Sat 8.0 ft 6v<S. Group salaa Box often 
379 6061. 


HAYMARKAT THEATRE ROYAL. 930 
9832. Until May 28. Eras 7^0- Ma“ 

Wed 2.30. Sat 4.0. PENELOPE KEITH. 

ANTHONY QUAYLE .TREVOR PEACOCK 
In HOBSON’S CHOICE. A comerfr by 
Harpld Brtahouxe- Directed by Rarraia 
Eyre. Running In repertoire with A Coat 
of Varnish and Captain Bratabound. 


House of Faser. the third 
largest company in Scotland, is 
to sponsor tltis year’s Edin- 
burgh Festival to the tune of 
£30,000. Announcing the spon- 
sorship yesterday. Professor 
Roland Smith, chairman of the 
House of Fraser, admitted that 
this was a small sum for a 
company whose capital invest- 
ment programme this year 
amounts to £60ra. 

But the sponsorship has 
rescued this year’s Festival, 
after . director John Drummond 
had lost two major sponsors last 
week, just as he released details 
of the programme. At one step, 
and somewhat suddenly. House 
of Fraser has become the Festi- 
val’s biggest sponsor. Their con- 
tribution will support two of 
the roost prestigious events: the 
opening concert, on August 22. 

NATIONAL THEATRE. S. 928 2252. 
OLIVIER (open vtasei Ton't 7.15 ' Tamer 
Z.OO I low price matt ft 7.15 GUYS AND 
DOLLS. 

“TAM /BNItfFiiliim ctao^. . w .. . 

bv Tom 


HAYMARKET THEATRE RDYAL. 930 
9832. PENELOPE KEITH. MICHAEL 
DENISON. JOHN TURNER In CAPTAIN 
BRASSSOUND’S CONVERSION bv 

Bernard Shaw. PravlewF June t open* 
June 10. 


HAYMARKET THEATRE ROYAL. 930 
9832. June 24-Juhr 7. PETER BARK- 

WORTH. ANTHONY QUAYLE. MICHAEL 
DENISON In A COAT OF VARNI5H. A 
new play by Ronald Millar. 


HER MAJESTY'S. 830 6CaS-J. CC 930 
4025-6. Group Bln 379 60S 1 - Eves 
7.30. Sat mat 30. FRANK FINLAY In 
AMADEUS by PETER SHAFFER. Directed 
by PETER HALL. . 


KINGS HEAD. 228 1916. D nr 7. Stew 

8. VICTORIA WOOD ft THE . GEfAT 

SOPRENDO in FUNNY TURNS. ENDS 
SAT! Lunchtime 1.16s SWEET DREAMS 
by Richard Kane. • 


LONDON PALLADIUM. 01-437 7373. 
MICHAEL CRAWFORD In the 8r&ldw*Y 
Muclcal RARNUM. Eve* 740. Mat Wed 
and Sat 2-45. Use the Saraum Hotlines 
01-437 2055. 01-734 8961 lor 1n««it 
credit card rcservatlona. NOW BOOKING 
TO FEBRUARY 5 IMS. 


LYRIC TH8A13U. Shaftesbury A.e. BOX 
Office 437 3686. Tel Crrtft card hksw 
accepted. Red price sreva TonlaM ft 
, Tomorrow, Opens Wednesday at 7.00. 
GLENDA JACKSON. GEORGINA HALE 
In SUMMIT CONFERENCE. A new Play 
bv Robert David MacDonald. Era* JL0- 
Mat Sax 5.0. Wed mats Imo May 5 at 
3.0. . 


LYRIC HAMMEREMmi. SCC 01-741 

S'-ftWlMV*. 


SUftfibfclW 


ft BUMFS cast Inert: EDWARD 

BRIDGE ft CAROLINE BLA KOTOW.. 

LYRIC STUDIO: Eras 8 pm RENTS to 
Michael Wilcox- 


may FAUL 629 3036. CC 379.6565. 
Grp bica* 836 3962. Eve* LM- Sat 
B4> ft S.Q, Lari Week. Leonle Hefmevr. 
Sarah McNair. Michael Maxwell In 
BOOGIB. Seat* £7ft0. £5.90 ft UJHL 
Staiurnddv Dots sun per W £124H» 


MERMAID TM.. BiacUrtan. EC4. S 236 
3560. CC 2S6 5324 Red. .Wle* crew 


freeT Thursday- OPENS MAY «_«JA 
ROBERT HARDY. “ 


SIAN PHILLIPS DEAR 
LIAR- Subs eve* 8.0. Sat 5.15 ft L3D. 
HALF PRICE MATS WED at 3-0- 


NEVT LONDON. CC Drutv lAte. WC2. 
01-405 0072 OT 01-404 4079. Evs 74S. 
Toea and Sat 3.0 end 7.45- The Andrew 
L loyd- Wa tea r-T. 5. Eltot AjnN Winning 
musical Cats. Group book] not 01-405 
1M7 or 01-379 6061. LATECOMERS 
NOT ADMITTED WHILE AUDITORIUM 
15 IN MOTION- PLEASE BE PROMPT. 
New Boating till Jan 29. 


Tojnor 7AS ON THE 
Stoowd. 

COTTESLOE rtmall .auditorium low 
or ice iktsi Ton’t 7.30 SUMMER nv" 
play by Edward Bond. Last Z 
Tomor ft Thur 7^0 ONE WOMAN 
PLAYS loot suitable, ter children!. 

Extol lent cheap seats, day ot otrl all 
3 tbeatm. Also standby 45 mlnstetore 
start Car park. Restann-aot 928 2033. 
Crodlt card bkas 928 5933 . 

NT also at HER MAJESTY’S- 


PALACE. CC 01-437 6834. CC..Hqt II on 
437 8327. Andrew Llovd-Wabbai-s 

SONG and * DANCE. Starring Marti 
Webb ft Wayne Sleep. Men-Frf 8 pm. 
Map Wed 3. Sat 5.4S. a JO. 


PHOBNIX THEATRE (Cbarlng Cress Road) 
01-836 22S4ft611. Eves 8.0. Frl ft Sat 
6.0 ft 94. ONE MO' TIME! THE GREAT 
NEW ORLEANS MUSICAL ONE MO' 
TIME IS A GOOD. TIME! Group sales 
01-379 8061. Rl»9 Teledata 01-200 
0200 for instant confirmed CC bookings. 
24-hour nenonal services svallabto- 


P1 COLD ILLY- S 437 4S0fi. CC 379 ESB5. 
Group sales 01-836 3962. 379 G061. 
Preatel bkg Kav 220 2324. Mon-Fri 
7.30. Mat Wed 3.0; Sat 5.30 ft 8.15. 
Plays Bank Holiday M«v 3. ROYAL 
SHAKESPEARE COMPANY .In Willy 
Russell's new comedy EDUCATING RITA. 


prince EDWARD. Old Compton St. Tim 
Rice and Andrew Lloyd-WcbOer’* EV1TA. 
Directed by Harold Prince. Ergs 8.00. 
Mats Thur C economy price) and Sat 3.00. 
Era oerf ends 10-iS. 5 Box Oftca 437 
6877. CC Hotline 439 8499. Group 
sale* 379 6061 or Be* office. ’for Instant 
24 hr bxps ring Teledata 01-200 020 0. 


PRINCE OF WALES THEATRE. 930 8661- 
CC Hotline 930 064ft pr Tcledrta 01-200 
0200 (24 hoar bkau ar teokina an 
entry- ROY HUDD. CHRISTOPHER 
TIMOTHY In UNDERNEATH THE 
ARCHES. A musical of the Flanagan ft 
Allen story. EVBS Mon-Thm 7-30. Frf 
ft SK at S.15 ft 8-30. Group sales Box 
efltae 01-379 6061. 


auews. s CC 01-734 1166, 43» 3849- 
4031- Group sales 01-379 6061. ton- 
inos 8,00. Mat Wed 3. Sat 8.16 and 
8-30. ANOTHER COUNTRY by JoUn 
MltehelL 


RAYMOND REVUEBAPL CC 01-734 1593. 
At 7.00. 9-00 ana 11 .00 nm. Open 
ten. P AUL RAYMOND presents thb 
FESTIVAL OF EROTICA. * 


ROYAL. COURT. 5 CC 730 1745- Evgi 
80. Sat Mat 4-0. Mon Eras ft Sat 
Mat all seats £2 NOT OUITE JERU- 
SALEM to Paul Kumbor. no nert Bank 
Holiday. 




THEATRE ECl. 837 


to 


56. credit cards 10 am 

6_jyn_ _27d 0871 (837 7306. Grp 


sales 379 81 
res . 200 

Offenbach 1 , 

G6ROL5TEIN. So nos «u.._ 

that swot From Tomor Eras 7.30, Sat 
Mats 2.30. Tka «-5D to £11. _ • 

Sprfno Dance Sudscrlptioa Saaaee, T*l. 
01-278 0855 <or brochure any time 

PARKING ariar 6JO pm. 


IftpLC 


B061 . 24 hr Instantly confirmed 
I 030P- New -production — 
ITs THE GRAND DUCHESS OF 
rEisi. Songs that- dance! Dances 


Wl 


a performance of Verdi's 
Requiem conducted by Claudio 
Abbado; and Peter Ustinov’s 
production of The Marriage. 
based on plans Mussorgsky had 
for an opera inspired by Gogol. 

The total sponsorship of the 
Festival 2dds up to £120,000 
compared with the figure of 
.*35.000 when John Drummond 
took o-'er four years ago. There 
is. of course, other local support, 
aid the Arts Council gives 
£300.0*10. The biggest source of 
income, however, remains the 
box office, and it is expected to 
yield a figure similar to last 
year's £700,000. This year’s 
Festival has 11 main sponsors, 
as well as hundreds of indivi- 
dual donors who last year 
raised a total of £76,000. 

The Verdi Requiem is lo be 
broadcast Jive on BBC TV. and 


SAVOY. S 01-836 6888. CC 930 0731. 
Even'.iBS 7.45- M«S Wed 2-30. Sets 
5.0. B.30. MICHAEL FRAYN'S NEW 
COMEDY NOISES OFF. Directed bv 
MICHAEL BLAKEMORE. 


SHAFTESBURY. S CC Shaftesbury Ave. 
WC2. Tel. Box Office 836 6896. 2nd 

Year Nell Simon’i Hit Musical tom 

CONTI with SHEILA BRAND. THEY’RE 

PLAYING OUR SONG. OAP* £4 (Wed 

mat only). Students £4. Era* 8.0. Mat 
Wed 3. Sits S ft 3-ZO- Credit cans 
blew 930 0731 (4 line*). 9.00-7-00. Sat* 

9.00-4.30. Red grate bkgs 01-839 3092. 

MUST END MAY 8. 


SHAW. 01-388 13? 4.. BRING ME SUN- 
SHINE. BRING ME SMILES. C. P. 
Taylor's last play. Era* 7.30. Last week. 
End Sat. 


ST. MARTIN'S. CC 836 T443. Eras 8. 
Tuesday Mat 2.45. Saturday* S ft 8. 
Agatha Christie's THE MOUSETRAP. 
World's I on pest -ever run. 30th Year. 


STRAND. CC 836 2660-4143. TOE 
UNDERSTANDING. OPENING IS 
CANCELLED. 


TALK OF THE TOWN. CC 01-734 5051. 
For reservation* or on entry. London's 
Greatest Night Out from 8 pm. 5 iwura 
of Too Entertainment- THE TALK OF THE 
town Gala galaxy revue <9-3oj 
wKh a cast of 3S. JULIE ROGERS 
(11 pm). Dinner. Dancing, 3 band*. 


THEATRE ROYAL STRATFORD El 5. 534 
0310. ON YOUR WAY RILEY by Alan 
Plater. With Brian Murphy u Arthur 
Lucan and Mauroen Upman *x Kitty 
McShane. Era* 8.0. TVt £1-CS. 


VAUDEVILLE. CC 01-&36 6988. Ctrl 8. 
Wed mats ZAS. Sats 5 ft 8. GORDON 
JACKSON In AGATHA CHRISTIE'S 
CARDS ON THE TABLE. 


VICTORIA PALACE. 01-634 1317-6. 
01-628 4735-6. Evp* 7-30. Mat* Wed 
A Sat at 2-30. UMtad number of good 
seats avail tMs week. ELIZABETH 
TAYLOR In THE LITTLE FOXES by 
LILLIAN HELL MAM. Credit card* 
accepted; Grans sales 01-379 6061. 
MUST END JULY 2. 


WESTMINSTER. CC 834 0283. Pope John 
Paul IP* THE JEWELLER'S SHOP. 
HANNAH GORDON. GWEN WATFORD. 
PAUL DANEMAN. Red nrtea grew 
from 17 Mav. Opens 25 May at 7 Pm. 
Eve* 7 AS. Mats Wed ft Sat 2-30. 


WHITEHALL. 839 6975. 930 8012-7765. 
CC 930 6693-4- Group Mies 379 8061. 
JOHN WELLS In ANYONE FOR DENIS? 
Mon-Sat 6.15 pm. Set mat 5 pm. Student 
standby £3-50 1 hr before pert Mon-Set. 


WYNDHAMf. S 836 8828. CC 379 GS6S. 
Group reduction 836 3962. COLIN 
■LAKBLET. ROSEMARY HARRIS In 
ARTHUR MILLER'S ALL MY 5DN5. 
Directed by MICHAEL BLAKEMORE. 
Mon- Ffl 7 JO. Sat 4 JO ft 8.00. Wed 
nut 230. Pirn Bank Holiday' MlV 3- 


YOUNG VIC (Waterloo). 928 6563. From 
Thura. Eve* 730. Sat 230- ROMEO AND 
JULIET- Seats £230 C party red £1.75]. 


Mr Drummond said that 
Humphrey Burton, the TV pro- 
ducer. was even now engaged 
on measuring camera angles to 
flatter fee sponsors while 
remaining within the code laid 
down for such matters. He 
welcomed tbe participation of 
House of Fraser and empha- 
sised his dislike of those within 
(he arts who remain queasy 
about commercial sponsorship. 

Professor Smith said ihnt the 
sponsorship was part of a deter- 
mination by the House of Fraser 
to re-eDter the mainstream of 
Scottish life. As the Edinburgh 
Festival was the Hatreds of 
European culture, his company's 
association with it was to be 
expected. House of Fraser, he 
said, was anxious to have “ the 
right visibility ’’ in Scotland- 
M.C. 

F.T. CROSSWORD 
PUZZLE No. 4,857 

ACROSS 

1 Class get by in Lancs (6) 

4 Frolic with a doctor in 
prison (6) 

8 The Moor for battle (7) 

9 Switchb: ard vocation (7j 

11 Agent cried about tbe scale 
( 10 ) 

12 Wrong returns at a fast pace 

(4) 

13 It Is a remarkable thing 
when a dandy comes to tea 

(5) 

14 We see a gent upset about 
Ireland on his way in (8) 

16 “ Letting * I dare not — ‘ I 
would"’ (Macbeth) (4. 4) 

18 Furious artist made an offer 

(5) 

20 Refuse container, captain 
(4) 

21 You must be mad to have it 
^tighten up (5, 5) 

23 New Hampshire agreement 
(7) 

24 Dance to be performed 
sedately, tbe Duke said (7) 

25 It’s a gift for nearly every- 
one under canvas (6) 

26 Put on by those in a hurry 
(B) 

DOWN 

1 Report about 50 in love (5) 

2 Hieroglyphic keystone (7) 

3 Educated like Jonah (7, 2) 


opening Hindsmith through 
Schoenberg's 9 - instrument 
arrangement . of Busoni's 
“Berceuse elegiaque " to the 
Suite from Stravinsky's Soldier's 
Talc, which needs just seven 
players. But there was no 
diminution of energy: the 
Soldier’s Tale has long been a 
Sinfonietta party-piece, and as 
always they went at it with 
exhilarating verve. It is a 
vintage reading, hardly to be 
equalled for precision, character 
and delicacy. On Radio 3 the 
balance sounded impeccable. 

The Busoni-Scfooenberg study 
isn’t new to their repertoire 
either, though this time it 
seemed to breathe a new 
tenderness, with inner string 
parts freshly telling. Previous 
revivals of this grave Berceuse 
have struck me as prompted 
chiefly by the esteem in which 
the two composers arc held by 
intellectual musicians, for it is 
an enigmatic fragment. It 
seemed no less ingrown than 
before, but for once it took nn 
expressive life. It raises its 
voice only once or twice, and in 
fee Sinfonietta performance 


those moments were beau ti full;, 
judged — sharp enough to pierce 
but very gently, 

Hindemith’s Kammermusit 
No. I, composed in 1921, is onj 
of ihose pungent, high-spiritec 
early works that raise all the 
old worries about the composer’: 
later years of academic 
retrenchment. How coirid ths 
artful craftsman who wrote fee 
Kammermusik series tak* 
responsibility for the sonorous!? 
sticky textures of his postwsi 
music? Conducted by Davit 
Atherton, the Sinfoniett: 
account of No. l was all glittei 
and edge (Stravinsky’s Shrove 
tide fair recalled in the firs 
movement, driving coucerUwt: 
violin In the second, a rumblin: 
foxtrot Finale with jeerinc 
percussion) but for the thirr 
movement, a limpid quartet foi 
woodwinds and thy glockenspiel 
spelled out with cool affection 
For two or three years now I’ve 
been predicting (without 
enthusiasm) a Hindemith 
revival; this performance, like 
other recent Sinfonictti 
exhibits, made one warm to thE 
prospect a bit more. 



5 H Like the poor cat i’ the—” 
(Macbeth) (5) 

6 Support in Beds (7) 

7 Country of yes-men? (4, 2, 3) 
10 The spectacle of a gay parent 

(9) 

13 Wanting in the flight and 
loses consciousness (8. 3) 

15 Reversion concerned with 
too small fish (54) 

17 Local type in rising parcel 
of land (7) 

19 A feast may mean a wheel 
change (4-3) 

21 Ulysses was bound to resist 
her (5) 


22 Pass— that is sufficient (a) 
Solution lo Puzzle Np. 4,856 


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18 


Financial Times Tuesday. April" 27 1982 


HNANCIALTIMES 

BRACKEN HOUSE,. CANNON STREET, LONDON EC4P 4BY 
Telegrams: Hnantimo.London PS4.Te!ex: 8954871 
Telephone: 01-2488000 


Tuesday April 27 1982 


Diplomacy to 
the last 


THE GIST of the Prime Mini- 
ster’s statement to the House of 
Commons yesterday was that 
while tbe Government still 
desperately wants a negotiated 
settlement of the Faiklands 
dispute, time is running out. Mrs 
■'Thatcher stressed several times 
that now the bulk of the fleet 
has arrived it cannot lie around 
indefinitely in the inhospitable 
conditions of the South Atlantic. 
The strong impression was left 
that she was talking about days 
rather than weeks. 

At the same time, it appears 
that the Government’s Last hope 
of a peaceful solution rests on 
the American attempt at media- 
. lion, possibly coupled with 
the United States joining in the 
economic sanctions on 
Argentina. If that fails, the use 
of force will be imminent. 

Definition 

We differ from Mrs Thatcher 
in two respects. The first con- 
cerns the lack of detinition of 
war aims and the second con- 
cerns the Government’s reluct- 
ance to consider other 
negotiating channels if the mis- 
sion of Mr Alexander Haig, the 
U.S. Secretary of State, comas 
to nothing. 

As we suggested yesterday, 
an attempt to retake the Falk- 
land Islands militarily would be 
quite different from the recap- 
ture of the virtually undefended 
and almost uninhabited South 
Georgia. It would almost cer- 
tainly involve loss of lives and 
not only among the armed forces 
of both sides. It would also 
■probably involve some sort of 
pre-emptive attack on the main- 
land, if only to put the Argen- 
tinian air force out of action. 
In short, there would be a war, 
and the outcome of wars is 
nearly always unpredictable. In 
our view, the Government has 
not yet made the case fo^ that 
war being worth lighting at this 
stage, the more so since it has 
failed to say what it would 
wish to happen next if the mili- 
tary campaign were successful. 
The consequences of it being 
unsuccessful scarcely need 
mentioning. 

UN Charter 

It may be that in the end 
some fighting will be necessary. 
We should be prepared to 
approve of that, however, only 
if the last possibilities of a 
peaceful settlement have been 


demonstrably exhausted. That 
would require more than the 
breakdown of Mr Haig's 
diplomacy. 

It remains to us surprising 
for instance, that the Govern- 
ment has still not formally 
offered to refer the dispute to 
the International Court of 
Justice, described in Article 92 
of the United Nations Charter 
as “the principal judicial 
organ of the UN." As Mrs 
Thatcher said yesterday, both 
parties -to the dispute would 
have to agree to that pro- 
cedure. Argentina might 
refuse. But it is still an offer 
that must be made. 

The UN offers one other pos- 
sible way out which is not 
necessarily incompatible with 
going to the ICJ. Articles 75-91 
of the Charter are concerned 
with international trusteeship 
partly a legacy from the old 
League of Nations. They are 
not nowadays much referred to 
but the machinery for invoking 
them still exists. There is a 
Trusteeship -Council which can 
be called at any time. It could 
probably meet in New York to- 
morrow if Britain wished. 

Article 77c specifically refers 
to trusteeship being applicable 
to “ territories voluntarily 
placed under the system by 
states responsible for their ad 
ministration.’' One of the stated 
purposes is simply "to further 
international peace and 
security.” 

Opposition 

Again, it is possible that 
Argentina might not agree, 
though in this case there is no 
legal 'let-out If the Faiklands 
did become a UN trusteeship 
and Argentina opposed, the 
country would be taking on the 
whole UN. It seems to us that 
somewhere among these articles 
a peaceful solution might still 
be found, and one that need not 
necessarily be unfavourable to 
Argentina in the longer term. 
There might, for instance, be 
international development of 
Faiklands resources with 
Argentinian participation. 

The mood oF the House of 
Commons yesterday suggested 
that Opposition support for the 
Government's approach may not 
hold much longer. There were 
also some stirrings on the Tory 
benches. We believe that it will 
not deserve to hold unless tbe 
Government tries these diplo- 
matic possibilities. 


The training 
opportunity 


IMPORTANT decisions will 
soon be taken by the British 
Government about the training 
of the nation's youth. It is the 
latest in a long line of attempts 
to improve a system which 
remains, in the words of a 1980 
report by the Central Policy 
Review Staff, rigid, conservative 
and slow to respond to new 
industrial requirements. The 
fact that the new move coin- 
cides with, and is partly promp- 
ted by, a period of very high 
youth unemployment should 
ensure a strong political com- 
mitment to the programme. 

Weakness 

The Government'.** plans fur 
a new training initiative were 
pul forward Iasi Deeeinhcr: they 
have since been amended by a 
Manpower Services Commission 
task group, whose report comes 
before the full Commission 
today. The central feature is a 
Youth Training Scheme (YTSt. 
starting in September. 1983. 
which would replace the exist- 
ing Youth Opportunities Pro- 
gramme (YOP) and which, as 
envisaged by the Government, 
would provide a year's training 
for unemployed 16- and 17-year- 
olds who dn not so on to further 
education. The MSC task force 
wants to extend the scheme to 
young people in work as well as 
the unemployed: the former 
would undergo training on a 
q art-time basis. Each trainee 
would receive an allowance 
from the state — £In per week 

as proposed by the Government, 
£25 per week likely to be sug- 
gested by the MSC. 

One aim of the scheme is to 
.uke young people off the un- 
?mpIoyment regisier— a desir* 
»ble objective in itself, but of 
i mi led value if the effect is 
inly to postpone unemployment 
‘or a year. In theory the year's 
rianing should improve the 
,-oung person's employment 
jrospects. but a weakness of 
he scheme is the lack of an 
Umptoymem relationship 

jetween the trainee and the 
irgaoisation giving the traili- 
ng. Trainees will be lo some 
wtent be '* parked ” by the MSC 
*ith organisations willing to 
ake them; there will he little 
n centime to offer permanent 
obs. 

The ^employment-reducing 

:Iement might more usefully be 
provided by extending and 
■tmptifying the Young Workers 
scheme (YWS). which gives a 
subsidy to employers for each 
unployee under IS whose gross 
Uternings ere below £45 per 
veek. A training element couH 
>e added by tying the subsidy 


to an approved programme of 
off-the-job training, but this 
would imply a development of 
the YWS to do things for which 
it was not designed. 

Whether the YWS is the right 
instruevent for this purpose or 
not, some means needs to be 
found for altering the pay 
relationship between trainees, 
including apprentices, and 
adult skilled workers. As a 
recent NIESR study has pointed 
out. pay levels for apprentices 
in the UK, as a percentage of 
adult pay, are two or three 
times that of Germany or 
Switzerland. This distortion in 
the wage structure discourages 
employers from taking on 
apprentices whose skills ore 
easily transferable to other 
companies. It is one of the main 
reasons wh yin Germany and 
Switzerland over 50 per cent of 
school leavers enter apprentice- 
ships compared with only 14 
per cent in the UK. 

The wage level for most 
apprentices is, of course, fixed 
through collective bargaining. 
It is part of a pattern of long- 
established practices and 
attitudes which bedevil the 
British training system. 
Another weakness is that 
apprenticeships cover too few 
occupations and arc designed 
too narrowly, creating barriers 
both between different skilled 
trades and between skilled and 
semi-skilled jobs. In Germany 
both apprentices and semi- 
apprentices are exposed to a 
wide variety of jobs within the 
factor}’. They are more factory- 
orientated than job-orientated 
and. partly for this reason, the 
boundary between, say, produc- 
tion and maintenance work is 
much less rigid than in Die UK. 
This greater flexiblity makes it 
easier to adapt to changes in 
technology and work methods. 

Incentive 

The present pattern of train- 
ing. linked as it is to the craft 
traditions of trade unions, will 
not be reformed overnight But 
the new arrangements must, 
among other things, contain in- 
centives for employers to offer 
training of appropriate quality 
and for unions to co-operate 
in a more flexible use of skilled 
manpower. While many of. the 
changes will have to be nego- 
tiated at national or local level 
between employers and trade 
unions. the Government 
directly or through the MSC, 
must be prepared, as tbe CPRS 
report put it. to give a strong 
“steer” to the system. The 
barriers of tradition and con- 
servatism will not fall a«y 
without a determined push. 


BIRMINGHAM’S LOCAL ELECTIONS 





for the Alliance 


By Peter Riddell, Political Editor 


T HE- local government 
elections in Birmingham 
on May 6 would have 
been one of the most fascinat- 
ing . tests of the British 
political mood even without 
the Faiklands crisis. 

In the event, the crisis has 
added a further, and possibly 
crucial, twist of unpredictability 
to the outcome. 

The results in Binnnighaxn 
will be significant 'partly 
because of the inherent impor- 
tance of the city, the metro- 
politan district council’s 
expenditure in 1982-83 will be 
nearly £500m. 

More important, -the city, and 
the region which surrounds it 
bavb also in the past been 
political beliweathers, deciding 
the fate of governments. The 
Conservatives won fibres parlia- 
mentary seats in the city in- the 
1979 election and roughly half 
Mrs Thatcher’s majority in. the 
Commons comes from the West 
Midlands. 

Birmingham presents a par- 
ticularly intrigui-ng test for the 

Social Democratic/Ldberal Alli- 
ance which, as in the rest of 
Britain, is making its first full- 
scale electoral challenge. The 
Alliance has to do well m the 
city and in the West Midlands 
as a whole if it is to rival the 
Tories and Labour in the next 
Parliament. 

The dilemma for the Alliance 
in the city was summed up by 
Mrs Shirley Williams, one of 
tbe SDP’s four leaders, when 
she noted last month that “ the 
people -of Birmingham have not 
had to suffer from tbe kind of 
Labour extremism that people 
in places tike Sandwell and 
Walsall (with well-publicised 
closed shop disputes) have 
faced." 

Birmingham has been Labour 
controlled for the past two 
years — currently with 64 seats, 
against 51 for the Conserva- 
tives. six Social Democrats (all 
defectors from Labour) and five 
Liberals. It is the only one of 
the metropolitan big city 
authorities to contain its spend- 
ing during the coining financial 
year within the Government's 
targets. 


Ideal 

decisions 



Birmingham is also unusual 
because the rise of the far-left 
has so far been held in check : 
the traditional Labour Party 
remains in control, in contrast 
to- other big cities such as 
Manchester, Liverpool and. large 
parts of London. 

None of the city’s seven 
Labour MPs voted for Mr Tony 
Benn in Last year's deputy 
leadership contest and' only 
three of their constituency 
parties did. 

There is, nevertheless, a 
strong Left-wing presence. The 
left is reckoned to control, or 
to have a big say, m three or 
four of the city’s dozen constitu- 
encies. The Militant Tendency 
is not more than an irritant, 
though <the “Bennite” Labour 
Co-ordinating Committee is 
more active. Mr Albert Bore, a 
prominent supporter of the 
LCC. was selected m place of 
Mr John Sever, the sitting MP, 
in Ladywood. But local activists 
believe this decision reflected 
personality differences and the 
involvement of various Asian 
groups as well as the le/t/rigfrt 
balance. 

The explanation for the con- 
tinued dominance of the centre- 
right within Labour is partly 
organisational. Unlike other 
cities, the right still seems to 
be able to get its supporters out 
to crucial meetings, as shown 
by the selection of many of xrs 
candidates in inner city wards 
which are apparently safe for 

These trends may also be 
traced to a tradition of party 
cobesivecess and pride in the 
city going back no Joseph 


Chamberlain, one of the most 
adept early operators, of the 
wider franchise. ' And the 
“moderates” .cause has been 
helped by the present of Roy 
Hattersley and Denis Howell 
among the cities’ MPs. 

The key figure in the city's 
politics is Mr Clive Wilkinson, 
43, the Labour leader on the 
council and one of the most 
widely respected local govern- 
ment figures in Britain. He is 
clearly on the right favouring 
the expulsion of Militant and 
similar Marxist groups and a 
return of the Labour Party’s 
proscribed list, banning certain 
organisations. 

He was one of the original 
signatories of the Limehouse 
declaration of January 1981 
which led to the formation of 
the SUP. But, despite con- 
siderable agonising, he has not 
left Labour, largely, it appears, 
because of local support and 
pressure to say on and fight 

Clive Wilkinson is more out- 
spokenly right-wing than many 
others in the city — and has had 
differences with Roy Hattersley 
in the paSt. Yet he retains his 
position partly through sheer 
competence. He is respected 
by left-wingers as a top-quality 
leader and defeated a chal- 
lenger by a margin of 3-to-l. In 
other cities the traditional 
Labour centre-right leadership 
has often been of poor quality. 

This “moderate” face of 
Labour rule has made life more 
difficult for the Alliance which 
is contesting all 117 seats (the 
whole council is up for election 
after boundary changes reduc- 
ing the number of wards). 

The Liberals have always had 
a foothold in the inner city but 
Dr Charles Gray, a former 
Labour chairman of the educa- 
tion committee, and his group 
of six only left Labour towards 
the end of last year. They argue 
that the Wilkinson leadership 
is not typical of Labour in 
Birmingham and that there is 
a movement leftwards as in the 
Midlands towns to the west 
And they claim there is dis- 
illusion among voters with the 
two main parties. 



The confident face of modern Birmingham hides fears for the future which may help Mr Clive 
Wilkinson, the Labour leader (right), in the forthcoming elections 


The problem for the Alliance 
is whether it has had sufficient 
time to achieve a sufficiently 
prominent public profile and to 
make the impart which has 
been the key to its election 
successes elsewhere. Dr Gray 
concedes that he would have 
liked another year when the 
party could have done a great 
deal to build up its presence. 

There is also the question of 
whether there is a large enough 
core of experienced activists 
from other parties, as in 
the inner London boroughs, to 
run a plausible campaign. The 
suspicion is that both the 
quality of candidates and the 
election effort may be patchy. 

The danger for the Alliance is 
that it may come second in most 
wards and the gap between that 
and winning could be small. 
The outcome could depend 


on bow well the Conservative 
vote holds up in suburbs such 
as Edgbastoh. - The Tories 
privately concede that their 
overall chances are likely to be 
hit by high local, unemployment 
and the shocks to the tradi- 
tional industries of the Mid- 
lands in the recession, as 
discussed in the accompanying 
article. 

But Mr Neville Bosworth, the 
Tory leader on the council, 
believes chances may be helped 
by a row over comprehensive 
education, single-sex schools 
and sixth-form colleges and by 
Labour delays over the sale of 
council houses — less than a 
tenth of those having a “ right 
to buy" their homes have 
completed purchase. 

The Faiklands crisis h&s, 
according to candidates of ail 
parties, hardly been mentioned 
on the doorsteps, though can- 


vassing tends to he -a brief ‘'for" 
or “against" This, assessment Is 
shared by SDP and Liberal 
leaders. As it is, the betting 
is that Labour will remain: the 
largest single group- on. the 
council with the ; Alliance a 
smaller presence, possibly hold- 
ing the balance of power. - 
The opinion . polls suggest 
that Conservative support 
nationally has risen during the 
Falidands crisis'— apd it could 
have been boosted by the South 
Georgia invasion .-with support 
for the Alliance . being 
squeezed. But the public 
mood appears 'volatile and 
events in the South Atlantic 
could determine what happens 
to housing and education in a 
landlocked city 8,000 miles 
away— an ironic legacy. for the 
city of that greatest of all 
imperialists, Joseph . Chamber- 
lain. 


‘Anxious for a quiet life and to protect their jobs 

INGHAM OUGHT to he a airiet life and to nrotect of the SDP. But both the cutting, not rising orders. you to your knees,” says Mr chairman of H 


BIRMINGHAM OUGHT to he 
ripe for the politics of protest. 
The motor car city has 
suffered disproportionately 
from recession, Male unem- 
ployment has nearly trebled 
in just tw# years to 20 per 
cent Factories stand empty 
and there is an almost 
desperate drive to attract new 
industry to halt the rapid 
rundown of the industrial 
base. 

But the mood in the local 
elections is surprisingly one 
of apathy. There is hardly a 
street in (he city without 
workers either unemployed 
or on short time. But the set- 
backs are taken philosophic- 
ally. 

"Workers in the factories 
have bad the stuffing knocked 
out of them." according to 
one union official. "The union 
movement is in disarray, and 
workers are just anxious for 


a quiet life and to protect 
what jobs they have.” 

The trade unions in the city 
have suffered a series of 
reverses at the hands of Sir 
Michael Edwardes, the BL 
chairman. He has overturned 
the powerful shop steward 
movement at the giant Long- 
bridge plant, where - employ- 
ment has been almost halved 
over the past four years. But 
there is no sign of workers 
switching their attention to 
the political arena to make 
their voices heard. 

An important concern for 
tbe Labour Party is that the 
apparent apathy could push 
the turnout below the normal 
level of around 35 per cent 
for local elections. Canvassers 
from all parties report con- 
fusion among the electorate 
caused both by the two tiers 
of local government and the 
much-publicised emergence 


of the SDP. But both the 
Labour and Conservative 
parties maintain that there is 
no indication that the 
Birmingham people will 
switch from their traditional 
allegiances. 

Business leaders meanwhile 
are reluctant to declare It 
too publicly but there is wide- 
spread disillusion — in some 
eases despair — at the Govern- 
ment’s attitude to industry. 
There is increasing scepticism 
about Whitehall and West- 
minster talk of an upturn in 
the economy. 

Mr Chris WaHiker, chair- 
man of the West Midlands 
region of tbe Confederation 
of British Industry, says the 
latest state of trade survey 
makes “ gloomy reading.” 

Demand is patchy and low. 
Profit margins are tight, 
especially on exports. Any 
improvement is dne to cost 


catting, not rising orders. 
Company liquidity is still 
under strain, particularly for 
medium-sized companies. One 
in four companies is forecast- 
ing further redundancies over 
the next three months. 

The dty was the first to 
sound the alarm two years ago 
that the Government's tight 
monetary policies might have 
a disproportionate impact 
upon manufacturing. Mr Reg 
Parkes. president of the 
West Midlands Engineering 
Employers, argues, in com- 
mon with many other Birm- 
ingham industrialists, that the 
Government strategy might 
be correct but is being applied 
too ruthlessly. “ The medicine 
might be right bat that does 
not mean yon swallow the 
whole bottle in one gulp." 

“It is very easy to get 
euphoric when yon are flat on 
your back and someone raises 


you to your knees,” says Mr 
David Probert. chief executive 
of W. Canning, a long- 
. established Birmingham com- 
pany with interests in elec- 
tronics, chemicals and metals. 

“This Government has failed 
completely to understand the 
collapse taking place in capi- 
tal investment They have 
gone overboard to; promote 
the tiny companies but; done 
nothing to help the plight of 
the medium-sized employers 
saddled with rising costs im- 
posed by the public seetor." 

Mr Probert claims to have 
voted for.' all three of the main 
political parties. He says tbe 
demand from businessmen is 
for politicians who under- 
stand their problems and will 
avoid extreme policies. 

One example of a man who 
has resigned from the 
Conservative Party to Join 
the SDP is Mr Alan Carter, 


chairman of HHon, . a 
privately-owned . engineering - 
company with 160 employees 
and a -£&5m turnover,- - As a 
supplier to the automotive 
industry he had to cut his 
labour force by 25 per cent 

He complains the Govern- 
ment which he helped to elect 
las neither created a good 
; business environment nor 
stood firm against wage rises 
and costs in the public sector. 

“ The Tory Party is out- 
moded. I hate to say it but 
Socialist governments have 
been better for industry. 
-Many industrialists are turn- 
ing in tbe hope of sane 
policies to the SDP. This 
country does not want or 
need extremists like Margaret 
Thatcher and Tony Benn.” 

Arthur Smith 
Midlands Corres. 


& Matters 


Germany’s 
trade marks 

Passionate denunciations of 
protectionism and embargoes 
are Che stock-in-trade of German 
chemicals companies, who are 
among the world’s biggest 
exporters. But when Herbert 
Griinewald. the usually jovial 
chairman of B3yer, and presi- 
dent of the country's chemicals 
industry association, launched 
the latest deFence of free trade 
at the Hanover Industrial fair, 
a new and unexpected name had 
been added to his list of world 
trouble spots: the Falkland 
Islands. 

And for good reason. Hardly 
believing its computer tfip 
German chemicals industry has 
discovered that this is the 
market where it achieved the 
biggest growth in export sales 
last year. German salesmen 
are well known for their per- 
sistence in pursuing foreign 
customers, but even they are 
little astonished at their 
success in the South Atlantic. 
West German chemicals exports 
to the Falkland Islands jumped 
in. 1981 by no less than 155 per 



I think yon need an opera- 
tion but PH have to ask 
COHSE for a second opinion” 


cent 

The volumes are not yet so 
big — DM 46,000 in 1981 com- 
pared with DM 18,000 in 1980 — 
but it is the growth rate that 
looks impressive on the graph 
paper. 

The Falkland islanders it 
seems are particularly keen on 
German photo-chemicals and 
pharmaceuticals tit is not clear 
whether tranquiliser stocks were 
being built up on the basis of 
advanced knowledge) and they 
also imported DM 5,000 worth 
of plastics. Even with a com- 
pany named Imperial Chemical 
Industries it appears * that 
British industry if not the 
Government, could be relin- 
quishing its grip on yet another 
colonial market. 


Whose move? 

" In the grocery trade, we play 
squash not bowls, ” says David 
LinnelL illustrating what it 
takes to stay on the ball in 
that industry. Which makes his 
own exclusion rsom the thick of 
the retailing action since he quit 
ns managing director of the 
Linfood group last year, the 
more frustrating. 

A member of the Northamp- 
tonshire faintly which founded 
the Linfood business, Lionel! 
agreed in parting to stay on the 
sidelines for two years. But he 
will be back in the trade in 
which he has spent his life j'/st 
as soon as the deadline expires. 

He has kept in shape as 
chairman of the Eggs Author- 
ity. and by joining a number of 
private business ventures; and 
in close touch with the indus- 
try's developments as presides* 
of tbe Institute of Grocery 
Distribution. 

While some of his old col- 
leagues were launching AFD 
Holding — a £12m management 
buy-out from Lrofood—- yester- 
day, Li nee 11 was drafting Ms 
opening speech for the IGD 
convention in London today, 
under the pertinent title: 
“Whose Move?" 

The trade, sal's Lmneii, has 
reached a high level of uni- 


formity. After .self - service, 
hypermarkets, cash and carry 
and voluntary group trading, it 
is now poised tor a new leap 
forward. 

Enough time has been spent 
retrenching, he tells me. “We 
now have to start spending to 
create the industry of the 
future." 


By request 

What is going on at House of 
Fraser? Two days before its 
annual results are , to be 
declared, the group announces 
that it is sponsoring a per- 
formance of a sombre religious 
piece — Verdi’s Requiem no less 
— at this year’s E dinb urgh 
Festival 

Now I know thing s have been 
tough, what with Lonrho 
snapping at its heels, and the 
sales in January being hit by 
the strikes on Southern Region. 
But a requiem? 

Professor Roland Smith, 
group chairman, seemed rather 
jaunty when broached on the 
subject “ We are anxious to 
have the right visibility in 
Scotland,” he tells me. This is 
why House of Fraser stepped 
in at the last minute with 
£30,000 when two other sponsors 
dropped out of the Festival. 

“ Some of our board members 
are quite cultural and cultured," 
says the professor. Did he 
include the Lonrho representa- 
tives on the board? “About five 
executive directors who were 
available approved the spemfing 
on the festival,” he adds, with- 
out specifying whether they 
included the two Lonrho 
representatives. 

The sponsorship is not 
limited to a requiem. As Lonrho 
wafts in the wings attempting 
to take over the stores group. 
Fraser is also sponsoring a 
Peter Ustinov play called .... 
“The Marriage.” 

Scuppered 

The 420 islanders who cling 
to the rocky outpost of Sark in 
defiance of Channel gales are 


miffed with Sir Geoffrey Howe. 
They believe their tiny piece of 
the British Isles — it is not part 
of the United Kingdom they 
remind me .with a sturdy 
independence— deserves better 
treatment than it Was accorded 
in the Chancellor’s recent 
Budget. 

The truth is that Sark, a 
thriving offshore financial 
centre these days, has itself 
fallen victim to one of the tax 
avoidance measures introduced 
by tbe Chancellor last month. 

The tax haven status enjoyed 
by the Channel Islands under 
British law has provided both 
ups and downs for the islanders 
over the years. But the good 
people of Sark thought they 
had spotted a wheeze to replace 
their 40-year-old steamer He de 
Serk which provides the island’s 
main link with Guernsey. 

They planned to order a 
custom-built pass eng er and 
cargo . ship costing nearly 
£900,000, and to reduce the cost 
of the loan by taking advantage 
of the tax concessions available 
to British banks lending over- 
seas. 

Before the agreement could 
be signed with a bank, however, 
the Chancellor knocked it on 
the head by announcing slgps to 
stop overseas lending “at 
abnormally low interest rates 
at the expense of the UK tax- 
payer." 

Tbe Sark shipping company 
found it would have to repay 
about £15,000 a year more than 
it had bargained for. So He de 
Serk will sail for a little longer 
while the islanders shop around 
for a second-hand cargo boat. 





Sportsman 

Heard in a Leeds hotel bar " I 
find golf an absolute godsend. 
Any time 1 have a row with the 
wife, I can go to my club.’’— 
■■ That’s civilisation for you, old 
boy. Your ancestors would Just 
have reached for it." 


Observer 


The difference 
between knowing 
your market ana 
winning the business. 

■%n can get to know the 
market through desk 
research and advertising. 
Winning the business means 
getting to knowyour 
customers, and their needs. 

It’s all the difference 
between being in the 
market. . .and being seen in 
themarket-place. It’s 
summed up by a company 
called i ll''— Industrial and 
Trade Fairs Limited. 


- ' Tfou may know we arethe r 
world's largest, mosty.\ 
experienced^ independent v 

- exhibition orgamsers^t&u 
may be unawajre bfthe • i - . 

enormously wide range of 

markets our events coven 

Or how cost-effective tbeir 

market-place coverageis— 
through Europe, the 
Americas, USSR &Far ’ . 
East markets. : 

The list below is purely an 
indication, of product 1 
coverage in "World markets. 

Our knowledge of your 
market puts yon in touch with 
some of the world's . 
best-attended shows, which 

your prospective customers 

rely on to mak e their buying 

decisions. 

*Ib re alise the full potential 
oflTF shows in the UK and 
overseas, simply contact 
John Legate, Industrial & 
TVade Fairs Ltd, Raddiffe 
House, Blenheim Court, 
Solihufl, West Midlands, 
B912BG. 

Telephone: 021-705 <>707. 

Tbl ex: 337073. 


XrFSHO'WS-MARKETS& PRODUCTS COVERED 


CHINA 


Data Processing 
Materials Handling 
Office Equipment 
W)od Processing 
HONGKONG 
Electronics 
Security Control 
JAPAN 

Energy Technology 
KOREA 

SbipbuOdiog/Mnittc 
Textile Machinery 
MEXICO 
Felling Industry 

SINGAPORE 
Aerospace Technology 
Apriailwntf Equipment 

Audio Visual 


Computer Tbebnology 
Fishing Industry 
Food Processing/ 
Brewing & Baking 
Furniture 
International Fair 
Jewellciy/Wndies 
Laundry St Gteahing 

Mining - 

Photographic 

Equipment* 

Rubber & Plastics 
Havel 

Wood Processin g 
UK 

Storing 

Carpets 

Communications 
Defence Components 
Heating,\fcanlatlan& 
AirCcndmomfis* 


Tburmatot! 


Home Appliances 
& Furniture 
Ho tels ft C atering 
Hydrenlic^Pnetmafics 
Laboratory E qui p me nt 
laondryft Cleaning . 
Materials Hand! mg 
Men's & Boys’ Qotfring 
Needkcnft 
.Packaging. * 

Plastics ft Rubber 
Printing . 

Welding 

WhKS ft Spirits 
USSR . , • 

Petroleum & Gas . . 










*J«'*r* * 






Financial Times Tuesday April 27 19S2 


FINANCIAL TIMES SURVEY 

Tuesday April 27, 1982 



jobs 

if 


.r.Vi» 

i.a 

«a \ 

. !•! 

■ uni' 



Development 


The regions still have a concentration of declining industries 
and are straggling against a background of world recession. The returns to the 
country could well be greater from spending more on retraining people 
in new skills rather than from backing Job-creating projects. 


Battling against 
the recession 

BY ANTHONY MORETON, Regional Affairs Editor 


BY AUGUST the review of 
regional assistance which Sir 
Keith Joseph put in hand when 
the Conservatives came to 
power in the summer of 1979 
will have been completed. That 
review was based on the 
principle of concentrating 
assistance where it was most 
needed and has, necessarily, 
been a drawn-out process. Com- 
panies still remember, and feel 
great resentment about, the 
abrupt ending of regional 
employment premium by the 
then Chancellor of the 
Exchequer at Christmas 1977. 

As a result of Sir Keith's 
steps the rate of grant towards 
new buildings, plant and 
machinery in the special de- 
velopment areas was left at 22 
per cent but their value was 
enhanced by a reduction in the 
level of grants available to the 
development areas from 20 to 
25 per cent and . in the number 
of development areas. 

The third am of the policy, 
severely cutting back the 
number of intermediate areas, 
is the one that remains to be 
Implemented. By August this 
Government will have suc- 
ceeded in its aim of rolling 
back the- map of regional 
Britain though Sir Keith is no 


longer at the Department of 
Industry to see the completion 
of his work. 

The review instigated by Sir 
Keith — now Britain's Health 
Secretary — took place against 
a background of increasing 
concern from academics inter- 
ested in regional affairs. It also 
took place, although he was not 
to foresee this, against a back- 
ground of deepening world 
recession in which unemploy- 
ment in Britain more than 
doubled from 5.3 per cent that 
summer to 11.8 per cent now. 

In the 1960s it was thought 
that regional policies could go 
a long way towards offsetting 
the structural problems affect- 
ing the assisted areas. The 
Hunt Committee, for instance, 
which looked at the inter- 
mediate areas, talked at one 
point about ‘breaking the hack'* 
of the regional problem and 
hoped that by the mid-1970s 
“the major problems in many 
parts of the development areas 
will have been largely over- 
come, at least so far as 
unemployment is concerned." 

No one would make that 
forecast today. Apart from the 
realis a tion that the present 
recession is structural rather 
than cyclical in nature, and 


therefore likely to be more 
acutely felt in the regions, it 
has been accepted that the rate 
of unemployment in the regions 
has remained consistently above 
that at the centre. The regional 
problem has come, especially 
over the past five or so years, 
to be seen as a long-term issue. 

This is the reverse of what 
the Hunt Committee forecast as 
recently as 1969. Hunt believed 
that by attracting new indus- 
tries into the regions the level 
of unemployment would be con- 
siderably eased. But all that 
happened was that branch firms 
arrived in large numbers and 
when the first winds of reces- 
sion came after the 1973 oil 
crisis these were the first to be 
closed, leaving the assisted 
areas no more economically 
advanced. 

Considerable criticism also 
surrounded the policy of that 
time by giving large ©rants to 
capital-intensive projects which 
provide few jobs* in relation to 
the amount spent. It was 
claimed that laying out £300m 
on a petrochemical complex 
that might create 300 jobs was 
an unwise allocation of scarce 
resources. 


Costly 


It may be that the critics 
while rightly attacking the 
branch factory syndrome have 
got it Wrong in seeking to 
associate the putting up of 
capital-intensive works with this 
criticism.- While petrochemical 
projects, such as those in Tees- 
side or Grangemouth, have been 
costly they have at least pro- 
vided permanent jobs and con- 
siderable spin-off. 

Expensive projects stand 
more chance of remaining, and 
remaining open, than cheap 


ones. It is simply too costly in 
most circumstances to uproot a 
£3Q0m catalytic cracker and re- 
build it somewhere else whereas 
it is very easy to close a £lm 
trouser plant and absorb its 
resources in another plant in 
another part of the country. 
Therefore the crackers may, 
indeed almost certainly have, 
brought long-term prosperity to 
the areas in which thev have 
been built 

Such projects also tend to 
reduce the imbalance between 
the periphery and the centre. 
This imbalance is not merely a 
British problem: the whole of 
the EEC has seen the centre 
grow at the expense of the 
periphery and this widening of 
the gap is likely to be accentu- 
ated with the growth of newer, 
technology-based industries. 

The regions still tend to have 
an above average concentration 
of industries structurally in 
decline, such as steel, coal, 
shipbuilding, textiles and some 
heavy engineering. The newer 
industries, based on electronics, 
are seeking bases around the 
centre. 

In Britain, for instance, one 
of the most important areas of 
development in the last three or 
four years has been along a line 
drawn either side of the M4 
motorway between London Air- 
port and Bristol. 

This area is one totally with- 
out regional assistance (other . 
than such selective assistance 
that the Government might 
think fit to offer) and yet it has 
attracted a very large number 
of high-technology companies. 
They have gone there partly be- 
cause they can tap the supply 
of high skills which are either 
available or willing to move to 
the area. 

This might give a due to the 


I CONTENTS | 

Loudon 

n 

Profile: Norman Lamont 

n 

EEC policies 

m 

Wales 

rv 

Scotland 

rv 

Profile: Dr George 
Mathewson 

rv 

Northern Ireland 

VI 

Inner cities 

VI 

New towns 

vn 

Growth points 

vn 

Enterprise zones 

vm 

Profile: Nigel Vinson 

vm 


sort of regional policy that 
could play an important role in 
future. In a rapidly changing 
economy, with the emphasis in- 
creasingly on high technology 
and the associated skills, what 
new companies look for is a 
supply of skilled labour. 

One of the problems of the 
assisted areas is that the skills 
they offer are no longer re- 
quired or are required in 
smaller amounts than previ- 
ously. Britain no longer needs 
ships' welders, miners, and 
some other trades as much as 
it did. 

If some of the money which 
presently goes into regional 
assistance were to be diverted 
to retraining men and women 
into the new skills the return 
to the country could he greater 
than from backing projects on 
the basis of the number of 
jobs they create in manufactur- 
ing industry. 

Admittedly, a lot of effort is 



-v » 

-- irviim* "■ /*# 


•MU A, 


Sjrindons Brunei Centre, named after the railway pioneer, is one of many 
city-centre schemes which have been a feature of regional development 


being put into this field. The 
Manpower Services Commission 
has about 100 Skill centres 
around the country’ which offer 
retraining in some 80 trades. 
They do a good job, but they 
are only scratching at the 
surface. An average-sized centre 
turns out about 400 “gradu- 
ates ” a year in courses lasting 
up to 26 weeks, which is simply 
not enough. 

It is sometimes argued that 
a man who has spent a lifetime 
in one job, such as mining, is 
not good material for a switch 
late in life to another. 

A worker with skills which 
are no longer needed because of 
changes in the industrial struc- 
ture is quite capable of being 
retrained in other disciplines 
and consequently able to con- 
tribute to the economy in a 
different way. More than one 
company has discovered this 
as the Skillcentres can vouch 
for from the letters they receive 
from employers. 

There could be one other way 
of attracting new industries — 
through creating development 
agencies for parts of England, 
especially the North West and 
the North East 

The role of both the Scottish 
and Welsh Development Agen- 
cies in attracting new invest- 


ment, especially from abroad, in 
their respective countries has 
perhaps been undervalued by 
many people. But there is little 
doubt that the heavy concentra- 
tion of high-technology indus- 
tries. especially from America, 
which have arrived in Scotland 
and the large number of Japan- 
ese concerns in Wales have been 
in the main due to the part 
played by the development 
bodies. 

Principle 

Yet both Conservative and 
Labour governments have set 
their face adamantly against ex- 
tending the principle to Eng- 
land. Indeed, there are some 
within this Government who 
would like to see the reverse 
step taken and the two agencies 
wound up. 

Government ought at the 
same time to rid itself of its 
obsession with concentrating 
assistance on manufacturing in- 
dustry. There are parts of the 
services sector, for instance, 
which should be assisted if they 
can be shown to be able to con- 
tribute to the economic well- 
being of an area. None falls 
into this category more easily 
than tourism. 


At the moment tourist pro- 
jects. such as the building of 
hotels, only qualify for assist- 
ance if they take place in a 
designated assisted area. Yet 
the main areas of tourist growth 
potential arc outside the 
assisted areas. There may be a 
case for stimulating tourist 
growth in places such as New- . 
castle or Glasgow but it is far 
more important to get the holi- : 
daymakers to places like Cam- 
bridge, Ely or York. 

Introducing more flexibility 
into the system of regional ' 
assistance is not, though, going 
to cure the fundamental prob- 
lem in the short terra. What 
has to be recognised is that the 
core of the regional “problem" 
is the same today as it was when ' 
the first effort was made in the ' 
mid-thirties to do something . 
about the depressed areas. It is 
a long-term problem and needs 
patient and continuous applies- : 
tion of thought and support. 

The assisted areas need a . 
generous supply of new firms, ■ 
small or large, which will * 
become winners. It should be 
the aim of government to ensure 
that not all the potential 
winners follow their noses—or 
market dictates— and cluster t 
around themselves in one rather - 
nice, rich part of the country. 



• ) 

A 

* I 


V 

<• • 

• .-.?U 


emaEirW* 6, 


..X 





§ 


Corby’S good at solving 
business problems. 

No matter how big. And we've an impressive 
track record to prove it, too. 

Corby was designated as England's 
first EnterpriseZonein June 1 981 . So unlike 
some areas talking about whatthey can offer 
in the future, Corby has hard andfastfadsto 
quote. 

When Enterprise Zone status was 
offered, Corby's greenfield sites had already 
been opened up and prepared. 300,000 sq. ft. 
of speculative factories were under 
construction with more planned, the first new 
companies are now on site. 



The total area covers almost 280 acres, most 
of which is already serviced with roads and 
utilities. 

Then, in addition to the benefits of 
EnterpriseZone status, Corby has the 
incentives of a Development Area as well as 
BSCIndustry Aid and ECSC loans. All 
of which can be incorporated into an 
individual package for each company. 

In recent months alone Corby has . . 
attracted such names as: Oxford University 
Press, BXL Ltd., RHM and Allied Mills. 
Companies who took a good look at the fads 
and figures before deciding in Corby's favour. 

So fake a look at Corby yourself. You'll 
soon see how much bigger our solutions are. 


■ For more information, send to Fred McClenqghan, FT® 

■ Director of Industry, Corby Industrial Development Centre, * 

■ Douglas House, Queens Square, Corby, Norfhanfs. ■ 

Telephone: Corby 62571 . Telex: 341543, » 

I Name: ■ 

Company; ...... J | 

■ Position; ■ 

Address: I 

, rzz=r:=:: .ii 













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I 



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With one 'phone call you can hear as much (or as 
little} as you like about one of the key growth areas of the 
U.K. economy - Cleveland County. 

Friendly people will give you straight answers to 
questions about opportunities, premises, sites, incentives and 
finance. Tell you all you need to know quickly and 
confidentially. 

So pick up the .'phone and 
(QB42) 222123 for UnkUne's 
24 hour service. Or, if 
your interest is more /j Jj 
long-term, fill in the f #t t 

coupon below and ^-7^ 
we'll send you a copy 

of the Cleveland Factpack. \ ~ 1 





cf . 


now with 
Enterprise Zone 
benefits 


Dial LinkLine 

( 0642)222123 


i 


i 


Please send me a copy of the Cleveland Factpack. 

Cl 

ieverana 

position - — | 

county council 

imuu - — . — I 

m 

^ | 


>'1 . 


mmcsEJL 

Omit Pknrntg Other. Devrland County CounrJ. Surrey Houses 
Gurney Slice!. Middlesbrough. Cleveland TS1 IQT 


1 Cleveland County Council. Gurney House. Middlesbrough. Cleveland TS1 IQT. 

■ Cleveland County comprises the boroughs ot Hartlepool, Lang&aurgb. Middlesbrough 
"*m I and Stockton-on-Tees. 









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5-3 >;-y '*T;: ■: • 


Cwmbran welcomes 
businessmen with headaches. 


You’ll find lots of brick walls in Cwmbran. 

But noneyou can bang yournead against. Cwmbran, GwentNP 44 ixz.Tei: Cwmbran 67777. 

So successful is business in our bustling new See Prestei page *35190#. . 

tnuun we’ve had to exoand - creating yet another please send me your industrial information pack, and details of the 

industrial development - grant s and incentives you can 9 nra me. ■ _ 

LlantamamPark. p iti . - . ■ 

We’ve factory units from 750 sq.ft to 12,000 sq.fL . uHprMHMM . 

and larger. Serviced sites are also available. And we’ve Company H K_^M 

a package of grants and incentives that will give you -[HI b| 

relief from today s financial pressures. Address ’ WBS jf '' JB 

. As any business here will tell you, Cwmbran is a . . 

great place to get things done - and a beautiful place. to A — , 

live*. There's a large arid enthusiastic skilled workforce. Fra^CVOTIlIlWStt W^* 

And were close to major roads, rail links, docks and : — Iwfiess jKwSteourvi^ 

airport For more information, send us the coupon today. 1— — - — — « — — — — — — — ■ — — 


Address. 


Cwmbran^ 


flflHl? 


.afientws 


launched 


THE LONDON -unemployment past three years, and e^ptethora that' . thia ■ benchmark is’* a mo6f horoushs which have st t 

figures displayed prominently of regional developmeQr«difini» disappearinsr. . ‘up .aitcnties or launched 

on the roof of ‘..County HaH- liave keen launched in the a GLC renort uroduced two nsploymcnt inili^i»vp>. SmaiT 

headquarters of the Greater capital. years aeo suezested thaf had companirs' faciury e-U'.es i.jve 

London Council, arc designed .- ■ LoDdon’^ cconoml& 4 >robIem^ ^ rfOTtT ^ Ilri ^^_ e ._.. bl aa., pd . Jaeen un m Lanibcih and 
partly for the eyes of While- arc more complex than else- Wandsworth With the cxcpftasfc 

hall, across the .-Thames. The where in the ■■ counter.'--’ ^ While -tjSidSS' ’•» small uniur.' 

di splay is a n attempt to the trend is.;to. concentrate - JJ®- SSfa&*k rf vS- ■ Southwark- for '.esaniplc, has 

Ifflnnu; mum rontnl nm*npn. mnrp and mnrp MmiMrriif and "SluiB nave gsmeu ■ U °W - P l * .m ... ... .rt^anprilnr* rnmnanv 


impress upon central govern- more and more commerciaJ and «t «P an indepeniJer-t company 

ment the need for a proper internationai^deddw^ making gjj" SgJJJJ to'adrainwmr its 5*ib and bust- 

regional development policy }n the city, die industrial base v '4 ii »,!!? ness'isre.'ittoa progranuoes. tft 


for the capital, which, has seen has' declined sharply. • a' oid tlie Governincnt'r. con- 

its industrial basfr decline and The capital accounts for about lacturtngjooe duru^they^t- straints "on local auihonfy 
its population .drift away. 16 per cent of the UK gross 25 yean -r- more than. three « nan ^p. fiJtwccn .iniM981 

The emphasis- on regional domestic product Some 13 per- .tunes rthc national average# Southwark job creation 

policy after the 1939-45 war was «nt oE all employment is in Qmsrafe scheme helped .Wu campamp*? 

dispersal, from London to the London and SO per cent of that - . . .... .. and created 3.0iVi .ioh5 in -a wide 

New Towns and to the expand- emplo>Tnent is service-based. London's regional develop- variety nf industries and Ber- 
ing towns. Controls on London’s jyitli *1* international . trading ment policy is divided into throe vice?. 

office building and the develop- ImKsfocusmg pntne City, banK- separate activities: work by the .* fL Greater l.om’on En ter- 

ra ent grants given to employers ’ n S. insurance, finance have air boroughs, . the London-wide Dri . e floard was ui> if? 


nesE-'creatioa programmes, to 
a\ aid Die Govermncnt’r. con- 
straints' "on iocal a«;ho«ry 
finance. Between 1?*^ .mil !9S1 
the Southwark job creation 
scheme helped wu campanil 
and created 3.0flo .iob5 in a wide 
variety nf industries and ser- 


drain, not unexpectedly, con- employment committee, sees ation and centiTU government 
tained. a higher proportion of the increased depende nce on measures. They work In this 
skilled young people. The papa- seirice empIojTnent as dampen^ way; - : 

lation of Greater London at ing the . level of wages In the • London’s boraughs. particu- 
6.7m in i 981 is at its lowest level capitaL . SkiUed jobs in xnanu- lairiy in the inner- city 
this century. facturing traditionally have areas, are aware of the 

London's decline, notable in acted as a benchmark for wage need to attract- industry, 
the inner areas such as Lambeth rates in other sectors for Tower Hamlets, Wandsworth, 
and Southwark, has worried manual workers and the Labour Islington, Hackney, Southwark, 
policymakers, particularly in the GLC administration is worried .-.Lambeth and Hammersmith are 

PROFILE: NORMAN LAMONT 


The man at 
the Ministry 


IN THE past weeks as the fleet 


as dfiyish on economic. 


sailed towards the Falklands matters, and on the liberal wing 
and international shuttle diplo- of the party on other issues, as 
macy took over, it became all befits a one-time chairman of 
too easy to fall into an assump- the Bow Group. A dry, per- 


tion that nothing else mattered 
in Whitehall. 

Contrary to much public 


haps, with more than a touch 
of wetness? 

I asked him if he was a touch 


belief Whitehall has continued too wet for the acerbic tastes 


to process the forms, to 
administer and fill the com- 


of Sir Keith Joseph and if this 
might not have been the reason 


mittees — in other words, run he went to Energy rather than 
everyday government. Norman industry in 1979; Be denies 
Lamont is one of those who has this completely, saying he gets 
been “ open for' business as on welt with Sir Keith and has 
usual.” • a lot in common with him on 


usual.” a lot in common with him on r 

Since last September Mr the economic front. are now to be found in the ;il ” v ^ 

Lamont has been Minister of Commons. * 

State at the' Department of In- Islander Politics were all-consumin- fn • * 

dustry, the man responsible for . . the young Lamont at eambridyc V hi croLX o c --tin 

the Government's recion.il policy Mr Lamont was bom and and so they have been ever nent^a^^ -Si 
— and regional policy has con- brouslu up until he was IL in since . A spell ^ rosearrh ?*?* 

tinned, albeit in a low key. the Sbetiands. which makes him assistant to Duncan Sandys. on ' 1 ' ' in,i , on ' , ‘* 1 -° u * !j, H 
throurfiout the Falklands com- the only islander in the com- t 0 Conservative Research 
inss and goings. mans. There is mote than a Department and a period in 

In recent years, there has touch of the Shetlands about merchant banking belore fight- 

been some disquiet in academic st L“ a * e of ins hopelessly m Hull and 

circles at the course, under sue- * aw - : 1 ^ enle ^ T . no .^? a ^„ 1 1 ? 1 ® successfully in the ouler 
cessive governments, of econo- his mother. His father was a x^mdon Borough of Kingston, 
mic polica' towards the Tcgions. suffieon — the surgeon — - pojjjjcs coosume his 

but Mr Lamont denies any who moved to Lerwick. _ He no time greedily ^but he finds time 
charge of inflexibility. longer gets back to the Shetland follow soccer, American 

Defending the changes intro- J?. 1 ® 01 * 5 much as he would politics, birdwatching and dn a 
h,< Voith Jncrali u-h(>n like since his mother now lives great deal nf readme. The 


ation and central governmeni j nitia iir from a special 2p m the 
measures. They work m this pomjj " r at^ ihat Ioc-jI nuthonLies 
, ‘ .... -can lew binder . Section 13“ of. 

• London s boroughs, partial- ^ lfl7 2 ^atal Gnvercment Act. ‘ 

laT ^ r m ^ rA^^nf *?hP The Greater London Knterpri.w* 

ti iSdu&ii Board wants ti> create 

need -- to attract- industry.. . ^ v~ icssjus ■ 

Tower Hamlets, Wandsworth. on 

Islington, Hat*ne>-, Southwark. d? vclopm ^m however 

Lambeth and Hammersmith are .Jff22wlr«d ^-through fhe 
. . . ■'■"'••• London Docklands Dev’Ciopnrcnt 

Corporation. The ■ corporation-':; 

: job is to help rejuvenate an 
’ area o£ S.1Q»1 acres, stretching 
eastwards right miles from the 
Tower on tlw ed'je of thr City 
of London and including sites 
oh the southern bank of the 
• Thames. 

Much of the early emphasis is 
going fo he' oh housing deref- 
' merit, which the corpora* inn 
' believes is vital to revitalise the 
area. The aim of urban renewal 
is now to work within communi- 
ties rather than simply demol- 
ishing and leaving large areas 
derelict for years. 

The crux of the matter 
money and previous a? tempts to 
' rejuvenate London hare failed 
because of shortage of fundi or 
" bureaucratic delays. The Dotfe- 
lands Corporation's budget this 
. year is ftSni wiih a £*nni 
. - budget nert year. The. LDDC 

JSiOmutU lAllflOtit’ (lAultifl secs its rnir in national loisis 

fundamental question t because of tiie sheer s:?r m *hr* 

^ proje.-f. The. Dockland', are the 

h taracs* derdiet sue in Wes- 

r™™* 10 be found m ^ tem Htsropr.' 

all^nnnimtMB rr, • dCVcIopmOrt pOUC!‘ 

*«w* rite saaok iias iwfn «ia:riy 




LA Of ine U crlripr-vj 
v ° u wiiWi?iicd !»:• the i.hwer inner.!. 
Kingston. Bv the end of this nwn-i: *iu* 
a ^ JI 5 C .- ,IS Dog< iv.:: uff'.T nppnrtuni- 


duced by Sir Keith Joseph when fi r hSw WwSinhi ^21 87631 dcaI of reariin fi- TI,e free pci iod. 
he was Secretary of State in S Sn^e ImSLd to ttl b0 ? s „ °? his v how Lonfen's rr-tr? liau: beer, 

1979, Mr Lamont says: sStomVd? SS cathoUe torte: V.Js . blamed, in Urn pari for ac'inu »• 

•* Regional policy is obviously ° p3n l ns - Among the Believers, A. Millers a disincentive ;n bu>me«r. The 


“Regional polio' is obviously Wl ZZ ? . ^ong the Bebev'cts A. Miller s a disincentive ;n bu-me-. T he 

likely to be more effective if it „ “ A d h EraDdfamer Talc, The Computer Book, problem of t*;.- ri»?crcp=acv 

is concentrated on a smaller M.S tt,. f n ™n v ™„ uo #i Eu «pean Regional Incentives, between London rales ami the 

number of areas where there is l0 A {S5Si *5! S iiS S 3 tome Suaranteed to induce rot of the 

greatest need. Even if we had JSL r F n JjS d S- U&S' Ed “““ d DclVs . & solve: 


JHgHfi »iS° V S? 3 to induce S-ythTSSiff « Sikdr 

innP «^c d C ?^ ?Sl Ed “““ d Dc »' 5 tn be solved units,* a radual 


of policy. a ?jrive Con- Labour man. An interesting 

‘^his* does not mean we are Sgjjd xS^SuSBi choice - 

Aflthony Moreton 

is tiiat policy pays too little 
attention to inner-city mattera. 

I also wonder whether we could 

relate it much more to emerg- ._ 

Ing technology. Do we give jT^-'X ‘ 

enough emphasis to service in- . •: w&*i&C'! 'Zfy'Qr? 1 " 

dustries? - • - • • 

“ These are fundamental .■ v- v ^ 

questions that we are asking 
ourselves all the time. We are 

examining the options.” . HKHHKmBG 

Within the short time he has . t • 

been ?t Industry, Mr Lamont 

has acquired a secure grasp of ^ 

regional problems. Indeed he 
■has won approving nods from 
his civil servants for his ability 

to master a difficult brief. He MR 

works at it hard but tends to 

be a little reserved until he has SERVICED % r 
mastered . a subject, as though TNIMP^TRIAT SITF*! 
slightly unsure of himself. iS>m4nArmPQ 

Once having mastered, he UrTUOUACKEo. 

flowers. . There .is no reticence 
now when he talks about 

regional affairs, ' ' * ” 

He is. “delighted" to be at 
the- department In Opposition 

he and Kenneth Clarke were two fc-?;- f -.' • 

young shadows under Sir Keith 

watching the department When • 

the Tories swept to power Mrs m’AnvmTTTMflffi 

Thatcher sent Clarke to Trans- 

port and Lamont to Energy. rACTORIES AND ^ 

both as Parliamentary Secre- "VvftREHOUSES FROM 

taries. There were many who 3,000 TO 40, 000 SQ.FT 

thought they had been treated 
less than fairly. ‘ * 

Both put their heads down, 
won their spurs, and were pro- 
moled, Mr Clarke recently 
becoming number two at 
Health. - 

Mr Lamont had a difficult _ . _ . . . 

time at Energy. The depart- Vi W| ■■■ 

meat came under severe fire ' ■ ■■■ ■ 

from its critics and Its minister, — I ■ 

David Howell, was eventually m 1 

moved without having covered ' 'Vcjurnewfectoiy orserviced s 

himself in glory. But Mr youirtTelftjrtl.- : 

' "ibii can even specffylantialor 

fee stand they took on energy. _ Tdfcn^sv?ori3oree offers awii 

' “ The trouble about energy is ' ‘ 
that Hie issues are terribly 

important but little understood. . AUourindtastaialare^arecon 

It amazes me that energy is ana nanayior oar dimate-contro 

just, seen as a cost and not in Blrm tngh a in is just 30 miles ; 

any other terms. .1 was closely miles to the nortlL 

associated with. -the' policy— . . . Bring^nurbiisiness to THforr 

which pushed up prices sharply spnrit dives ypu the right environ! 

—and I still get attacked about C3lJohrilVfcMahonon0952 

it when I travel around the Telford" information, package by v 

countty.” inent Corporation, Priorslee Hall, 

Is he therefore an economic . 

hardliner? He. describes him- 


a*.''' 1 .* 1 ’-'.', ft if' - • 1 


SERVICED 
INDUSTRIAL SITES 
UPTOSOACRES. 


m 


ttou cif a coherent regional 
development policy for London. 

Gareth Griffiths 


' ' -.'va - — :■ • -- 




"WORKSHOPS 
FOR ONE- AND 
TWO-MAN 
BUSINESSES. 


‘ HEADY-BUILT 
FACTORIES AND ^ 
WAREHOUSES FROM 
3,000 TO 40.000SQ.FX 



4 



OF THE 



■ybur newfec tory or serviced site is ready and waiting for \ 
•youinTelftjrtL- : ' 

ltiu can erenspedfyland alongside for expansion. 

- Telford's -workforce offers awidevarietyof skills. And 
• we have a superb range of homes available for any staff 
you bring with ^pu, available at veiy competitive rents. * 

. All our industrial areas are connected tofhe M54niotonva>: l 
andhandyforonrdimate-controlledshopplngcentre. “ 
- Birmingham isjust 30 miles awaj; and Mmichcster 1^75 \ 

miles to the north. 

. . Bringypurbusmessto ’Ifelford.'foullfind our independent 
spirit dives you the right environment for growth . ' 

Can. John McMahon on 0952 61313 1.Or get the*TSfelcoaie to 
Telford" information package bv writing to thelelfoidTfevetoo- 
meiitCkffpQmtion,ITi6r5leeHaU,Telford, ShropdtireTF3 9NX 


Welcome to 





lUtf: 









Financial Times Tuesday April 27 1982 


REGIONAL DEVELOPMENT 


Political exigencies are distorting what is already a marginal policy 

EEC’s spending still far too low 


THE EUROPEAN Community’s 
regional policies have so many 
shortcomings that it is tempting 
to believe that they are nothing 
more than a rather unconvmc- 
wfc-i*"!? 1 * relations exercise, 
wmte the mam objective of the 
European Regional Develon- 
meat Fund may well be to 
narrow the sap In economic 
wealth and performance within 
the Community, it seems able 
only to plant a small EEC flag 
on a road project in Sicily or 
a water supply development on 
Stornoway. 

This judgment will seem 
unnecessarily harsh to many, 
particularly local authorities 
casting around for every 
development penny they can 
find. If, indeed, the fund is such 
a derisory affair why should 
Yorkshire and Humberside and 
Devon and Cornwall be fighting 
against their possible loss of 
access to some of its resources? 


Perhaps because any area suffer- 
ing high unemployment and a 
relative starvation of invest- 
ment funds does not want to be 
sent to the back of the queue 
for development money. 

The first objection to the fund 
is that it remains and has 
always been totally inadequate 
when measured against the size 
of the problem. In the EEC's 
19S2 budget £995m is allocated 
for commitment by the fund or 
7.6 per cent of total Community 
budgetary commitments for this 
year. This is only a tiny fraction 
of what member states them- 
selves spend on regional 
development. 

Members of the Commission 
and the European Parliament 
who have fought hard to lever 
the total up to this level will 
point out that, though much 
more money is needed, the 
trend is in the right direction. 
In the past four years the 


ERDF’s share of the Community 
budget has climbed from 
around 4.5 per cent and import- 
ant amendments such as the 
non-quota section have been 
introduced. 

Marginal policy 

But the fact remains that the 
fund is digging away at a moun- 
tainous problem with a hand 
trowel. The Macdougall Report 
of 1977 noted that the redistri- 
butive effects between EEC 
states of the Community's 
finances is very small— only 1 
per cent — partly because the 
budget itself is so small (less 
than 1 per cent of total gross 
domestic product) and partly 
because the Community’s 
expenditures and revenues have 
a “ weak geographical power 
per unit of account.” 

It concluded that EEC spend- 
ing might begin to have a more 



Ford’s engine plant at Bridgend, Glamorgan, which opened two years ago. The 
£225m UK plant involved a massive public cash injection: the British Government 
put up £7 3m in regional deveto]ment grant and £7 5m in selective financial 

assistance 


positive effect if the budget 
were raised to around 2.5 per 
cent of GDP and its activities 
expanded to include structural, 
cyclical and employment 
policies as well as regional 
policies. 

Lonking at what -exists, rather 
than what might be. we see that 
political exigencies distort gn 
already marginal policy. About 
95 per cent of the ERDF is dis- 
tributed according to national 
quotas and earmarked for areas 
defined as priority areas by 
national governments. Certainly 
the four least prosperous 
member states, Greece. Ireland, 
Italy and the UK, receive the 
lion's share, 7S.3 per cent. 

But it seems difficult to 
justify the 8 per cent chan- 
nelled to relatively more pros- 
perous Benelux, Denmark and 
West Germany. Justification 
there is, however. Regional 
policy experts in the Commis- 
sion and Community politicians 
all agree that the ERr»P could 
wither away altogether unless 
all member states oa*e a direct 
financial interest in its con- 
tinuation. 

Among other thing?, this con- 
viction highlights ihe fact that 
it is not just the UK which has 
a “balance sheet” approach to 
the Community budget. It also 
says something about the 
rhetorics] worship of the con- 
cept of Community solidarity— 
“all for one and one for all” 
when it is remembered that, 
with the exception of West 
Germany, those more pros- 
perous member states draw 
several hundreds jf millions of 
pounds more out of the EFC 
budget than they pay in 
because of the workings of the 
Common . A er«uliunl Policy. 

It should also be remem- 
bered that th* CAP tends to 
undermine 3r.any of the Com- 
munity's regional policy obje: 1 - 
lives A Commit: ?on report 
published two years ago 
showed that thv average income 
of farmworkers in ihe EEC’s, 
five most developed areas had 
ne'ome seven times hfehcr 
than in the least-developed 
regions between 1969 and 197T. 

The main reason is that the 
items which receive most of the 
CAP’s price support— grains, 
milk and sugar — are produced 
in the northern areas while 
those that do least well from the 
agricultural policy — fruit, 
vegetables and wine — come 
from the less prosperous south. 

As a result.fi the northern and 


eastern regions' of West 
Germany receive between 20 
and 35 per cent more CAP 
assistance than the EEC 
regional average. All of Which 
has helped to widen the gap in 
per capita' - gross domestic 
product between the 10 mast 
developed regions mid the ten 
least developed from 2.9 to 1 to 
4 to 1. . ’ ■ 

Finally, the indictment of the 
current regional policy must 
also include the fact that it does 
not demonstrably lead to job- 
creating investments or infra-, 
structure projects which owe 
their existence to the Com- 
munity This is because of the 
way in which the member 
states, with the collusion of the 
Commission, • have cynically 
ignored one of the regional 
fund’s founding concepts, 

additionality.” 

It has to be acknowledged 
that at a time when all govern- 
ments are anxious to control 
strictly their public investments, 
the Community would have 
great difficulty in forcing them 
to expand regional spending 
above what is thought appro- 
priate in national capitals. But 
at the moment. Community 
funds do not seem to have much 
impact on regonal spending 
totals at all. 

Last year a British Depart- 
meat of Industry civil servant 
explained the present system on 
a BBC radio programme in 
these terms “ The fond- is there 
to complement and strengthen 
national regional policies, not 
to supplant them in any way. 
The whole process goes there- 
fore through national govern- 
ments. Since national govern- 
ments have already decided it is 
appropriate that a particular 
public authority should invest 
over a particular period .the 
funds which actually come from 
the Community have to be 
regarded as only a substitution 
lor funds raised from other 
sources, rather than additional 
to them.** 

Imperatives 

This is one of the several 
problems outlined above which 
the Commission is seeking to 
tackle in proposals for reform- 
ing the regional policy. A plan 
for casting the regional fund 
regulation is waiting for dis- 
cussion by Ministers out cannot 
begin to make political head- 
way until the so-called 
“mandate” agreement is 



The Indesit headquarters ahd eiectrical appliances factory at QrhassttKO, near 
Turin . While many of Italy's most successful industrial enterprises arc in tae 
north , the European Community 's regional policy -is directed at stemming tho 
northwards drift from the South bji funding projects in the Mczsogianio 


wrapped up. Essentially, this 
means that nothing much will 
happen until, a new agreement 
is reached on cutting hack 
Britain’s net payments to the 
Commtzniiy budget. 

Given tbe fact that the actual 
size of the regional fund will 
be finally . determined by 
member states, with the Euro- 
pean Parliament nagging .at 
their heels for more resources 
every year, the Commission 
has come up with some sound 
ideas, for making it- more 
effective. 

It wants to /tackle the problem 
of *i additionality” by switching 
from project financing to pro- 
gramme financing. This will 
involve the Commission •• in 
negotiating multi-annual . pro- 
gramme “contracts” not .just 
with member governments, hut 
also with local authorities. The 
Commission claims this will 
provide a better guarantee that 
Community grants are used to 
“ top up " national, aids “ since 
the regional authorities win 
have a clearer idea of whether 
financial ass stance comes from 
a national, regional or Com- 
munity source” In addition, 
says the Commission, this 
approach would enable ERDF 
operations a be more closely 
dovetailed with the overall 
development approach in a par-, 
tieular region and win make 
for greater operational con- 
sistency. 

This is only one of several 
important changes the Commis- 
sioner for Regional Policy, Dr 
Antonio Giolitti, wants to push 
through. The most politically 
controversial and the one which 


has sparked the Yorkshire and 
Humberside and - Devon and 
Cornwall battles mentioned 
above, is the notion that quota 
funds should be concentrated 
much more on the regions 
“suffering particularly serious 
structural problems.-" 

: Dr Giditti’s proposal incor- 
porates an index for. determin- 
ing which areas should qualify 
for quota funds which is based 
on per capita GDP at current 
prices and exchange rates' and 
longterm unemployment. On 
this index, all areas with a 
reading of less than 75 of a 
Community average of 100 
would be entitled to quota, 
money. . .. 1 . * • • 


Headway 


The rwo discontented British 
regions fall just outside this 
entitlement which it must be 
stressed n«is iiot- -jet been- 
endorsed by member- govern- 
ments. ' If. they were to be 
included, then it is u riders* cod 
that parts of France. Belgium 
and West G^nnany would .also 
have to be brougtti within the 
scope' of the quota, funds-— thus 
reducing their value to - the 
pocrer area* 

• On the Conurlssion's plan the 
qualifying region? would be ‘he 
whole of Ireland (quota: 7.31 
per cent). Northern Ir-.land. 
ports oi Sco j.id : f 

•ihr North . and Notfh-VTesi of 
England (29.28 per ttp h sIM 
Itsiy’s Mszzcgbrno (43.G7 per 
cent), the •-hole of Greece 
cxc:p’ A then.-' and Tfccs«absik’ 
(15,97 percent), Greenland (1.6 
per cent), and the French 
overseas departments (2.47 per 


cent). 

The proposal does nof mean 
that Yorkshire and H limbi' rsidc 
or any tther part of ; the 
Community . is by .definition 
excluded from the regional fund 
because of the .poUtiual impera- 
tives .outlined above. ‘ These 
would compete for money from 
an expanded m-.n-quots section, 
which wimJd account for per 
-cent of the fund instead of -I 
per cent os at present. The sort- 
qtmla section became opera- 
tional only last yc:ir, with =omn 
new character i sties that the 
Commission wants in fat-re 
also to apply to the quota 
section. 

At present quota funds can 
be . used enly far ■■ physical 
Investments, hut in future the 
strategy wctUd.be to fund small 
and .mcdrumsi^ec business 
tfevekrprcrnT, r ectorai *vr 
market studies, mstsasctr.en: 
improvements and the dissemi- 
nation cl information on 
modern techniques. 

Thi? upi rci:;'! . Trail £ 

siceutiihrr the rrrimw’ 
cus dsveJ innient potential,, a’ ys 
the Cuii:::i;s= : .on. “ in oth.'r 
words in cnrm;ra?e grw.h 
avtiviti&s Ihstsre already under 
vray nr can Jaucr/ied locally." 

After sevm years - c-r 
extremely nrtUryt achievements 


effur - .'! n: 

v; be*;:’? made I - 


p;?; Cn r’ ri 

;••• rc-i^ac! oosicy 


i.r •- : r ." • 

E\’< 


•.* 

l> , . T ’r‘.;=s':an &r.i- 

) 

■ i 

r.-jsr-’.LT £•>% . 

n 'vr/5 still hr.?* 

rr. ;.;i ca 

rerr.ctc in!- 

rp;-.e:js- pi:s:s. 

y 'i!3z irem esc"- 

i 


•r.7 p&.icMi., pcn:ju:;riy 
CAP. 

John Wytes 



are some 


am 




The selection of location for your com- 
pany is a decision you will not make lightly. 
There is too much at stake. Before you 
commit your company's future to pastures 
new, you will want to be certain that the 
advantages are real. That the gains a 
location can offer outweigh those things 
you expect to lose. 

At Redditch you will get that certainty. 
And, once here, you’ll rapidly appreciate 
what you've actually lost. 

You lose transport problems 

Because Redditch is right at the 
centre of England it is exceptionally well 
served for communications. No less 
than six motorways are close by, m? 
rapidly accessible by an impressive 
highway system within the town. ^ 

Within 30 minutes, Birmingham 
International Airport provides direct 
flights to seven major European 
cities. And, just beside it, the 
Railway Station provides a high 
speed link, to both London and the North, 
every half hour 

- . ~V 7 — 4. . 

:-*k ■»/*« 





Moat development These high specifica- 
tion premises provide fully equipped 
secretarial, receptionist and conference 
facilities and are ready for immediate 
occupation. 

Throughout your move, you’ll 
t have the help of a highly special- 
ised team of professionals, with 
the experience of helping over 
■400 companies establish, 
and expand, in Redditch. 



We are proud of our record of high 
productivity, based on outstanding labour 
relations and the in-built motivation of the 
workforce. 

You lose housing 
shortages 

Compared to almost any other location 
in the country, Redditch can offer you, and 
your employees, an astonishing variety of 
readily available housing of all 
types. * 



You lose labour 
problems 

The best offices and 
factories in the world would be 
useless without a skulled and experienced 
locally available work force to fill them. 

At Redditch the skills you need are 
available. 

Three of the country's major universities 
Birmingham, Warwick and Aston, are just 
25 minutes away, producing graduates of 
the highest levels, particularly in subjects 
essential to modem industries. 



You lose expansion 
difficulties 

When you come to Redditch we’ll help 
ou keep your business moving. Because 
re can give you the room you need to grow. 

The industrial unit you choose can be 
ailored to your specific requirements, with 
revision for expansion earmarked, right 
rom the start. And with first class modem 
actory units, from 600 to 50,000 square 
set, available ‘off the shelf you won’t be 
apt waiting. _ 

The requirement s of small, high 
echnological enterprises, whether involved 
i research and development or manufac- 
uring, are met by our unique North Moons 



Carefully planned and integrated 
residential devdopmenttfprovide convenient 
accommodation.' either to rent,'or t4buy. 
And, only minutes away, period housing 
and village life can be found in some of the 
most beautiful countryside in England. 

You lose the pressures of 
choked-up city centres 

At Redditch you gain the room, and 
the time, to enjoy family life. Twenty-two 
schools provide places for children of all 
ages. Some of the area’s best recreational 
and sporting facilities including a new IS 
hole golf course, are in the town. 


square feet of climatically controlled 
covered shopping space, with all the biggest 
names - Owen Owen, Tesco, Woolworth, - 
WHSmith, Marks and Spencer; British 
Home Stores, Boots, Sainsbury’s and many, 
many more. There is even an open square 
included for Redditch market, where colour- 
ful stalls with local produce and crafts add 
spice to your shopping. • / • • 

And you gain thfe beauty 
of Shakespear e country 

Though Redditch provides one of ^ 
the most modem working and living 
environments in the UJv it is set in 
the midst of exquisite countryside: . 

From historic Stratford-upon.-. - . 

Avon and the peaceful villages of 
Warwickshire arid Worcestershire, 
to the dramatic panorama of the 
Cotswolds and Malvern 
Hills, an unmatched variety 
-of scenic beauty is on your - 
doorstep. 


It means a better richer lifestyle for 
you. For your family. And for the families 
of yourworkfofee. 

To bring substance to these words is 
easy. Call Bernard Ryan, on (0527) 67066 
. and a visit will be arranged- Alternatively, 
amply return' the coupon- 



WeOl show you how . 
you can share in Redditch s success. 


pi* 

iM' *" - <r 'V 
^ ■ \ 


Redditch College of Further Education 
provides business administration and 
industrial courses plus a wide range of adult 
courses. And our new 100,000 square feet 
Skill Centre runs courses in areas vital to 
new technology. 




BI mm mm mm mm W m m mm m mm mm mm m m mmm mm-^mma — mm ■*— . imm m m mmm m m mm tmm mm mmm m 

J Post to: Redditch Development Coiporation, Holmwood, Plymouth Road North, 
I ' ‘ Redditch, Worcestershire. Telex RedlawG.33520L 
| Please send me more information on Redditch. 

j Name-... ■ iPositionj 


The a waid wirming Redditch Kmgfisher 
Shopping Centre boasts almost 1 million 



Postcode. 


Telephone No- 


rn 









■ Financial Times Tuesday .April 27 l9Saj.' 


REGIONAL DEVELOPMENT IV 


Huge efforts have gone into building advance factories and industrial estates ’ “ 


Vigorous marketing of Wales 
brings many more companies 


THE Welsh Development 
Agency did not exist it would 
have to have been invented. It 
is difficult to imagine quite how 
successive governments might 
have responded to Wales's eco- 
nomic difficulties in the late 
1970s and early 1980s without 
the agency. From the moment 
it was established six years ago, 
as Wales's equivalent of the 
National Enterprise Board, the 
WDA has played a pivotal role 
in helping Wales to cope with 
economy —arising from the 
massive rundown of employ- 
ment in the steel industry and 
the impact of the recession in 
general. 

To carry out its appointed 
tasks, the WDA was armed with 
a budget of £150m. It has 
taken on the functions of the 
former Welsh Industrial Estates 
Corporation and Welsh Office 
Land Restoration Unit and 
more controversially, the power 
and resources to invest directly 
in promising or new or expand- 
ing enterprises in Wales, 
through injections of either 
equity capital or loan finance. 

By far the greatest effort has 
gone into the building of 
advance factories and industrial 
estates to encourage new 
industry to come to Wales and 
indigenous industry to expand. 
It is a policy which was vindi- 
cated early in the agency’s 
history when the Ford Motor 
Company opted to build its new 
£225m European engine plant 
on the WDA’s Waterloo indus- 
trial estate at Bridgend. The 
availability of serviced indus- 
trial land, where construction 
work could begin quickly, was 
given high priority by Ford in 
its Europe-wide search for a 
suitable site 

Since then, the agency has 
been involved in a series of 
advance factory building pro- 
grammes totalling more than 
5m sq ft making the WDA the 
biggest industrial property 
developer, certainly in the UK. 
and probably Western Europe. 

The long-numing steel crisis 
has meant a strong boost to 
its activities. In 1978, the 
British Steel Corporation's East 
Moors steelworks at Cardiff 
was closed and iron and steel- 
making was ended at Ebbw 
Vale, creating more than 5.000 
redundancies overnight in the 
parliamentary constituencies of 
the then Prime Minister Mr 
Callaghan, and Deputy Prime 
Minister Mr Foot. The centre- 
piece of the Government’s res- 
ponse to the economic blow to 
both areas was a special allo- 
cation of £20m to the WDA to 


undertake a . crash programme 
of industrial estate and advance 
factory building to encourage 
new employment opportunities- 

This precedent was followed 
closely by the present Con- 
servative Administration, as 
first BSC’S Sbotton steelworks 
lost 8,000 jobs and then the 
slimline cutbacks at Port Talbot 
and Llanwem produced more 
than 11,000 redundancies. A 
£48m crash programme over 
two years, to be carried out 
mainly by the WDA, was 
launched. 

Hie net result is that over 
the past 12 months, new 
factories have been completed 
at an average of one for every 
day of the year. They will take 
time to fill in the current 
economic climate, but helped 
by a vigorous and sustained 
marketing effort there has been 
a sharp upsurge in enquiries 
from companies interested in 
moving to Wales and a rate of 
lettings which is running at 


about 50 per cent above the 
level of a year ago. 

At the same time, the 
Government in-, keeping with 
its privatisation policy, has been 
anxious to involve the private 
sector in the WDA’s fiTmni»mp 
Mid, so far, the Norwich Union 
Insurance Group, the Coal 
Industry Pension Fund 
Wknpey have joined forces with 
the agency on major develop- 
ment schemes. 


Another important, but less 
publicised, side of the agency's 
work has been continuing the 
job of ridding Wales of its once 
large legacy of derelict and 
polluted land. 

Where there has been politi- 
cal controversy, it has largely 
centred on the agency’s direct 
investment role. Mr Nicholas 
Edwards, the Welsh Secretary 
of State, not unexpectedly, 
imposed stricter investment 


guidelines and urged the agency 
to divest itself, as fax as 
possible, of its holdings in 
Welsh companies. 

.While Welsh Cons ervative s 
remain generally convinced that 
taxpayers’ money should not be 
used as risk capital, other 
political parties m Wales show 
every indication of wisfcmg to 
strengthen the instruments for 
direct Investment in die Welsh 
economy, if not by the WDA, 
then by more local enterprise 

a gwnffgg 

The Wales TUC. for example, 
has just published a new policy 
document called. Planning the 
Future: Economic recovery and 
beyond. It contains wide-rang- 
ing proposals which, if Bnpie- 
mented by a future Labour 
Government a« the Wales TUG 
would like, would give a 
“revitalised WDA" a major pub- 
lic investment role. It calls for 
the agency, as the regional arm 
of the National Enterprise 
Board, to pursue a policy of 


GRANTS TO THE REGIONS 

(1972-72 to 1980-81 £000) 

-—Plant and machinery — . B uDfltng S md w orks Total 

SDA DA Total SDA DA IA DLCA Total grants 
Scotland 276,684 270,429 547,113 g2412 66,014 2,941 — 15L867 698,980 

Wales 100,336 268,789 369,125 18.082 50,365 1641© — 84,757 453482 

North ern 282,133 443,821 725,954 66422 75,788 — — 142,610 868,564 

Yorkshire and 

Humberside — 36.631 36,631 — 15,105 117,734 — 132,839 169,470 

East Midlands — 280 280 — 28 12,271 3,976 16475 16455 

South West 420 30,430 30,850 301 8,422 4411 — 13434 43,984 

West Midlands — — — — — 520 2,013 2,533 2433 

Northwest 232,305 55430 287,535 48.414 7,455 94,925 — 150,794 438429 

Total 891478 1405,610 1497,488 216,531 223,177 249,113 5,989 694409 249249? 


building up a “leading 
presence” in key sectors of 
industry by a process of take- 
overs and new investment. 

"It should seek to ensure the 
fnHHment of priorities deter- 
mined by sectoral planning and 
the sector working parties and 
to stimulate improved industrial 
performance directly, through 
its own initiatives and by stimu- 
lating other companies,” the 
Wales TUC says. 

The document presents the 
conventional criticisms of the 
Left, arguing that the WDA has 
been given too limited funds, 
particularly since a large pro- 
portion of its budget has been 
used to ‘cover the cost of 
environmental improvement and 
estate wwmaggn ipnt rather than 
direct investment It claims also 
that the WDA’s “potential” has 
been constrained by restric- 
tions placed on its ability to 
acquire equity interests and 
“the use of traditional rates of 
return for the evaluation of 
investment projects and its 
short-tenn overall perfor- 
mance.” 

At some time in the future, 
therefore, if the Wales TUC has 
its way. the WDA’s role will 
he enhanced still further. It 
will operate as an executive arm 
of a Wales Economic Develop- 
ment Council, a Welsh Neddy, 
which in turn will have as its 
central task the drawing up and 
implementation of an economic 
plan for Wales. 

But whatever happens, the 
WDA is dearly here to stay. 
The onlv question is how its role 
will evolve from now on. 

Robin Reeves 


Initiatives are producing a feeling of optimism despite recession 

Freedom of action in Scotland 


THE ABOLITION of many 
regional development areas by 
the Government two years ago 
has placed a greater emphasis 
on local, rather than centrally 
directed, regional development 
initiatives. Scotland is one part 
of the country well placed to 
use this opportunity. 

Not only does it have ks own 
government department, the 


Scottish Economic Development 
Department, it also has the 
Scottish Development Agency, 
the Highlands and Islands 
Development Board, and the 
newly created Locate in Scot- 
land bureau — set up to attract 
foreign investment working m 
its interests. 

Taken together these bodies 
give Scotland a unique advant- 


age over other regions of the 
UK. They axe well staffed, well 
funded, have considerable 
freedom of action and after a 
shake-up of the SDA by the 
Tories shortly after the Govern- 
ment came to power — ■ are poli- 
tically secure. 

Their practical effect in creat- 
ing jobs should no t be over 
emphasised. The HllJB. particu- 


Jeff Clayton 
Gateshead 
( 0652)874711 

Methven House, A 
Kings way. Team Valley, yi 
Gateshead, Tyne & Wear NE11 OLN. ® 


Joe McBain 
Workington 

( 0946)850469 

Salterheck Industrial Estate. 
Workington, Cumbria CA14 5DX. 



Weff Dougherty 
Thomaby 
^ 0642)765911 


lariy, has been caught up in a 
sedes of fire fighting exercises 
in response to industrial 
closures, like the Wiggins Teape 
pulp mill at Fort William and 
the Invergorden aluminium 
smelter. Which have sapped 
much of its energies. 

The bodies have helped to 
engender in Scotland a feeling 
that despite the recession, 
opportimities exist for the 
foundation and growth of new 
industries. 

Electronics in the central belt 
of Scotland is a prune example. 
It has taken root long before 
the SDA was set up m 1975, but 
by promoting a detailed study 
and growth plan for the industry 
and by trumpeting its achieve- 
ments at home and abroad, the 
agency has helped to foster the 
impression that — far from being 
a recession-hit, depressed region 
— Scotland is “ Silicon Glen,” 
the land of opportunity. 


Image 





Bill Locke 
Liverpool 
051-913 2020 

tySandoa House, 257 Regent Road, 
-i Liverpool La 9TF. 


m 


Forster House, 

l Allen sway, Tbomaby-on-Tees. • 
i Cleveland TS1 7 9HA. 




lohn Derbyshire 
Doncaster 
( 0302)66865 

Hall gate House, 19 H allgate, 
Doncaster. South Yorkshire 
DN13NN 


'rank Jennings 
Bodmin 
( 0208 ) 3651/4 


53 Fore Street, Bodmin, 
Cornwall PL31 2JB. 


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ENGLISH 

INDUSTRIAL 

ESTATES 


In Eng!ancl,yoiiVe only one call to make 


This image was one of the 
factors which attracted Nippon 
Electric Company to site its new 
European semiconductor plant 
—due to start production later 
t his year— at Livingston new 
town and is being used to good 
effect by the two LIS offices in 
the U.S. in efforts to attract 
more American companies to 
Scotland. 

On a more practical level, the 
spawning of a number of 
smaller, indigenous electronics 
firms— such as Rodime, Fife, 
Future Technology Systems, of 
Ayrshire, and Flexible Tech- 
nology of Bute — has been 
ass isted by cash from the SDA 
or HIDE, matched in each case 
by a large investment from the 
private sector. 

“In the long term rt is by 
the growth of this indigenous 
sector that the impact of 
regional devdopment^must be 
judged,” says Edward Canning- 
ham, the SDA’s planning mid 
policy director. “ We are begin- 
ning to get together the finance 
to be able to do this. 

“ The agency is becoming 
more and more identified with 
the business community and we 
are developing closer links' 
with the universities. It is all 
coming together and that is 
why Scotland in - contrast with 
some of the other repons, has 
prospects . of a greater aware- 
ness of what the potential is. 

“We have looked around at 
where the opportunities, such 
as electronics, health care and 
other industries are and we 
are into the next phase of 
explicating them” 

The development authorities 
have been helped by the fact 
that the most painful contrac- 
tions in the Scottish economy 
have been made so that, 
although there are still 
closures, Scotland is not having 
to undergo the same structural 
adjustments as, say, the West 
Mi dl a n ds This has been 
reflected in unemployment 
rates which are lower than 
many other gimihw regions of 
the UK 


Ray Perman 


1976-77 


Regional development . 
grants 392 

Provision of land and 
b uildings 15 

Selective assistance in 
a ssisted ar eas 25 

Other re gional support 

Resid ual ex penditure , etc —6 
Sdective assistance to 
individual industries, 

Anns, etc 51 

National Enterprise Board 2 3 

Investment grants 26 

National Research and 

Development Corporation ~5 

Other support services 

Future industrial support 
Total 5X9 


PROFILE: 

DR. GEORGE 
MATHEWSON 

Making 

his 

mark 


IT IS little over a year since 
Dr George Mathewson took 
up his post as chief executive 
of the Scottish Development 
Agency, but even in that 
short space of time he has 
made an rnfeiihte mark. 

The contrast between Dr 
Mathewson and his pre- 
decessor, Mr Lewis 
Robertson, who is now chair- 
ing Midlands steel founders 
F. EL Lloyd, could not be 
more complete. The agency’s 
first full time head was a 
patrician of the old school, 
a tall imposing man with 
years of quango as well as 
industrial experience behind 
him. Its second is a stocky 
41-year-old technician, who 
thinks fast and acts almost as 
quickly. 

His background could not 
hare been more suited to the 
job he has now. He came 
immediately from the Indus- 
trial and Commercial Finance 
Corporation where, charac- 
teristically, he had risen with 
speed to become a director 
and assistant general manager 
in charge of a portfolio of 
1,000 companies. 

He also has experience of 
industry, and particularly of 
U-S- companies and high 
technology-two areas impor- 
tant to the vitality of the 
Scottish economy. After a 
first degree in applied physics 
at St Andrews University 
and a PhD in electrical 
engineering, he worked for 
five years in America, 
managing research and 
development projects in 
advanced avionic systems for 
Bell Aerospace. Daring that 
period he added a Master's 
degree in business adminis- 
tration to his qualifications. 

Exhausting 

He is a self confessed 
* workaholic " putting in 
long exhausting days at the 
SDA’s Glasgow headquarters 
and relaxing only , at week- 
ends, when he takes the plane 
north to the family home in 
Banchory, near Aberdeen. 

His personal style of inno- 
vative financial thinking was 
quickly demonstrated when, 
shortly after his appointment, 
he plunged the agency into 
the_ rescue of the Weir Engin- 
eering group, a decision amply 
vindicated by the group’s sub- 
sequent return to healthy 
profit. 

A commitment to new tech-, 
nology has also been demon- 
strated by the SDA’s adoption 
of a strategy of pressing hard 
for new investment in elec- 
tronics, health care, industrial 
biotechnology and advanced 
production engineering. 

He also altered significantly 
the agency’s investment philo- 
sophy. The Government 
when it came to power three 
years ago, imposed on the 
SDA tiie obligation to work 
and consult with the private 
sector before making invest- 
ment decisions. Dr Mathew- 
son has taken that a stage 
further, arguing that for prac- 
tical. rather than for ideo- 
logical reasons, the agency 
has to supplement its own 
resources of finance and 
expertise by tapping those of 
the private financial institu- 
tions. 

He is able to boast that 
during the last financial year 
for every £1 that the agency 
put into a new investment 
project the private sector put 
up £9. But his real test is 
to come- A few months ago 
the ageney launched a new 

subsidiary— Scottish Develop- 
ment Finance— to act as a 
consultant to the SDA itself 
in making new investment 
derisions. It is to have direc- 
tors drawn from the private 
sector as well as from within 
the agency and the first 
appointments are to be 
announced soon. 

Two previous attempts by 
tiie Government and thb 
agency to draw in private 
expertise to a joint public/ 
private investment bank and 
a holding company for the 
SDA’s portfolio failed in the 
face of blank non co-operation 
from fiie private sector. The 
success or failure of Dr 
Mathewson’s new approach 
wm be judged on the quality 
of the outside directors he is. 
able to appoint. 

R.P. 


REGIONAL AID’ . 

<£m) • .V.- ‘ 

1977-78 197S-79 1979-80 198041 1981-82 1988-83 1983-84 E&M; 

est esfc . «*L -iat, 


385 406 


474 598 353 


42' 52 

1 

-3 —V 


46 93 

33 45 

7 9~ 

-6 -6 

1 


X i 2 3 4 

6 12 

502 y 629 ■ 509 644 807 • 584 : 68ft 


A Japanese presence in Livingston^ the Scottish 1 . .. 
New Toivn designated in 1962. to act as a. growth-^ 
point outside Edinburgh. A large proportion of five ^ 
150 or so concerns which have been attracted canids 
from overseas . v . : "* f .; ' . 

—————— — —— — 

THE ASSISTED AREAS<^m> | 






S _ NawTbwmwhwSpedrt 
O Dowlapmant Arwb—fite I 
,&errothK“ are available r '- ” 


SkefrnersdaleJ 


■ ■ ■ §4 


Isles of Solly 


Where in the south 
can you get lowcast 
land, grants for 


and a work fora 
that loves you? 

Ortfy one answer On file Isle of “ uril 

W3ght Where there's a lot to . 

gladden the entrepreneurial eye. 

Giants and loans. Biddings and 

estates, both private and coundT . : ' . 
owned. Excellent communications m HHg 
— 100 minutes from London. .AbB 

Co-opera tire local authorities . And ABf Hi 
a very nice place to Eve. - SQg JBgf ! 

Ask PfesseyThom, British . M&' jfr 

Hovercraft and Pilatus Britten- . H 
Norman as well as many aT f||||| 

much smaller companies. Jim 

Or if you want all the details 

fflin our coupon fbrfacr sheets V 

and prospects. XnUa W 

... — acufit. i 







' .1:.. ... llN U. / ■-.'"■iji* . 






. FT 27 1* , L 


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1 l&Ie ot-Wi|ht Coig^Cotiptil, 6/7 Tcm,h L ane, Nesopott, Isfe ofV^bj; L 

j Once on Che Isfe, people are foa&e to fearo ft : ’ 

. Ill ‘ l - . ir> 'as.-- 






X 






London is a good 
place to be ‘near’ but it’s 
a better place to be in, 
and we should know. 

We’re in the heart of 
London Docklands our- 
selves, just a few hundred 
yards from the City as 
the crow flies. 

Not a few hundred 


;JvVC0St 
y *.*■ 

>rce ; sf-. 




PETERBOROUGH 


■ w >; • # ■ : ’ > ? 'Vfw 






WALES 


3 nours $fd*n London 


■MSKBk 


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MILTON KEYNES 


eastern 



' V 



miles as the car drives. 

London has more of 
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Which means if you’re 
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of touch. 

You’ll have to keep 
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For further details of 
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London Docklands 
Development Corpora- 
tion, West India House, 
Millwall Dock, London 
EI49TJ. 

And we’ll show you 
how to get your business 
movingforward. 

Not backwards and 
forwards. 

i nnrH 


LONDON DOCKLANDS DEVELOPMENT (ERPORATIQN. 


WHY MOVE TO THE MIDDLE OF NOWHERE, WHEN YOU CAN MOVE TO THE MIDDLE OF LONDON? 









VI 


Financial Times TuesdayApril 27 1982; 


HOW READY 
YOUR 



Y-MADB 
STORY? 

You know the set-up. No heat. No power. No offices. Sign 
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best of it. Look for your blessings and then try to count them. 



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And there's more good 
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Sizes go from 5000 to 
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Even the location's Vwv 
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And Northampton's not just another new 
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IIUMPTON 


Contact Donald McLean on 0604 34734 

Northampton Development Corporation, 2-3 Market Square, Northampton NNl ZEN 




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REGIONAL DEVELOPMENT VI 


Hopes are being put in a more unified development structure 




Uphill work in Northern Ireland 


FOUR industrialists, an 
accountant and an academic are 
due to get together in Belfast 
today for the first unofficial 
meeting of Northern Ireland's 
new industrial Development 
Board. 

When it is properly consti- 
tuted the Board will take over 
the functions of the Northern 
Ireland Development Agency 
and the local Department of 
Commerce's Industrial Develop- 
ment Organisation. The Local 
Enterprise Development, which 
looks after companies employ- 
ing under 50 people will keep 
its separate identity. 

The hope is that this more 
unified structure will give a 
sharper edge to the Province’s 
development efforts, be more 
efficient in trying to attract new 
jobs and new investment and 
reverse Northern Ireland's 
alar ming industrial decline. 
Last year, the Province lost 
22,000 jobs with only 3.500 new 
ones created. The unemploy- 
ment rate is now around 20 per 
cent with almost one in four of 
the mal e population out of 
work. 


Today's meeting is a tentative 
beginning. Apart from Sir 
Desmond Lorimer, chairman 
designate, only five board mem- 
bers have been appointed so far. 
A suitable chief executive has 
not been found, despite a salary 
of £50,000 being offered, and 
the legislation bringing the 
body into existence will prob- 
ably not pass * before late 

summer. 

Self-help 

Sir Desmond, who is chairman 
of Lamont - Holdings, the 
property, textile, engineering 
and life assurance group, says 
he hopes the board, which will 
have an annual budget of around 
£100m, will be at least able to 
stem the flow of job losses. 
“The IDB has got to achieve a 
greater stability for business in 
Northern Ireland and a greater 
recognition on the part of the 
people of Northern Ireland of 
the need for more self help/' 
he said. 

The advertising budget is 
going to be increased and a 
more determined attempt made 
to attract new. investment, parti- 
cularly from the UB. 


However, because of Northern 
Ireland's - image of instability 
and violence, renewed- by last 
year's hunger strikes. Sir 
Desmond says the biggest push 
is likely to take place at home- 
encouraging foreign and domes- 
tic companies in Northern 
Ireland to expand and export 
more. 

A significant section of the 
new board will be devoted 
exclusively to the problems and 
potential of existing industry 
and will deal with everything 
from job creation or mainte- 
nance to grants and support 
measures for exports in one 
department A “highly profes- 
sional ** rescue unit is also to be 
set up for companies in distress. 

Northern Ireland’s frag- 
mented Industrial effort — with 
claims that potential developers 
have been shuffled back and 
forth between NIDA and the 
IDO — has in the past been 
compared unfavourably to the 
Development 
flDA) in the Irish 
The structure now 
bas clearly been 
by the IDA’s 


Industrial 

Authority 

Republic. 

emerging 

influenced 

success. 


Inner city policies 
need time to evolve 


LAST YEAR’S RIOTS concen- 
trated the mind of Government 
on the problems of Britain's 
inner cities. 

But, as Mr Michael Heseltine. 
the Environment Minister, said 
in the wake of the riots: “The 
problems- have been accumulat- 
ing for a very long period of 
time, decades, and the policies 
that are needed will be policies 
that take time to evolve.” 

The immensity of the prob- 
lem can be illustrated by such 
bald - statistics as the inner 
cities, containing 7 per cent of 
the population, have 20 per cent 
of households in bousing stress, 
some 40 per cent of ethnic 
minorities, and . twice the 
national rate of unemployment. 

During the last year, while 
unemployment has continued to 
rise nationally, scores of initia- 
tives have been suggested, by 
both the public and private 
sectors. One of the main prob- 
lems has been to fully investi- 
gate the potential of various 
schemes but at the same time 
press ahead with projects so 
that action is seen to be insti- 
gated. 

Many of the government-led 
initiatives have sprung from the 
i'inancial Institutions Group 
(FIG). This group • of 25 
people, seconded for one year 
from the banks. City institu- 
tions and several private com- 
panies, was brought together by 
Mr Heseltine after his visit to 
Liverpool following the riots in 
Toxteth. 

The major initiative to 
emerge from the FIG “think 
tank” and which was formally 
launched last month by Mr 
Heseltine is a £70m grants 
scheme designed to attract 
jirivr’ie investment into the 

j fifies. 

■ ! on a U.S. housing and 
• ' ;velob»i'*nt project — 

:• • ( : .->-n Dcvc'ur -eni Action 
G ■ 'vhemc— the initiative is 
lit:'* -led to link public and 

v.v? sector funds on specific 
.sroiects. 

Under the scheme local 
authorities in 43 of the most 
deprived areas in England and 
Wales will be asked to plan 
investment projects in co-opera- 
tion with the private sectors. 
For the financial year 19S3-S4, 
for which the initial £70ra is 


earmarked, submissions will 
have to be made to the Environ- 
ment Department by September 
so that approved projects can 
be on stream early in the 
financial year. 

The aim is to attract private 
sector investment to projects — 
industrial, social and environ- 
mental — which could be made 
viable with an injection of pub- 
lic money. In the U.S. where 
such grants were, introduced in 
the wake of the urban riots of 
the 1960s about six dollars of 
private money spent is needed 
to attract every dollar of public 
money spent on urban regenera- 
tion. In Britain the intention is 
that councils will compete with 
each other to attract the maxi- 
mum involvement by the private 
sector. 

Mr Heseltine, in announcing 
the scheme said: “1 shall be. 
looking for projects which 
among other things will make 
a significant impact on the areas 
concerned and which will con- 
tribute to improving, the local 
economic base.” 


The main area of the 
Government’s direct involve- 
ment in Inner City regeneration 
is funding 'through tiie Urban 
Programme in which funds are 
allocated towards inner city 
areas, with particular emphasis 
on regeneration of local 
economies. 

This year the urban pro- 
gramme is to be increased from 
£215m to £270m with special 
emphasis on voluntary sector 
capital projects rather than 
revenue provisions. However, 
funding of capital projects, for 
example, of up to £lm over 
three years for one community 
centre in Lambeth, South 
London, can pose new problems. 
Local authorities, who put 
forward 25 per cent of the 
funds, are anxious that they 
should not shoulder the 
running costs of projects when 
Urban' Programme money for 
the particular project ends. 

Lisa Wood 


Mr Adam Butler, Minister, 
of State for Industry at the 
Northern Ireland Office says: 
41 We are well on the way to 
creating a highly professional 
single.- minded, commercially 
orientated and dynamic new 
organisation — one which will 
be as free a s possible from 
red tape, which will provide 
‘ one - stop shopping * to the 
potential investor, and which 
will offer to industry the most 
comprehensive range of ser- 
vices available.* 

Policy is at the moment in 
a state of limbo and : people 
are waiting to see what 
emerges but there are some 
fears' that the red tape will 
prove more enduring and the 
dynamism more 1 elusive- -than 
Mr Butler supposes. From 
both trade union and some 
business circles there is dis- 
appointment that the new 
board is not more autonomous 
from government Although 
there will be no civil servants 
on the board, the staff of the 
unified department, which will 
be around 300 strong, will be 
civil servants. 

Bfr John Simpson, an 
economist at Queen's University, 
Belfast believes that the unified 
structure is a step in the right 
direction but sees little prospect 
of radical change. There is too 
little public accountability, be 
believes, and too little informa- 
tion released to the' public for 
an informed debate on the 
effectiveness of .present indus- 
trial policy and alternatives to 
it 

Mr Simpson, who is a mem- 
ber of the National Economic 
and Social Council at present 
deliberating on the future 
shape of -the Irish Republic's 
industrial policy, believes 
research into the profitability 
of foreign companies in 
Northern Ireland is a priority. 

“If the firms are doing well 
we should be boasting about it 
If they’re doing badly we should 
be trying to find out why;” he 
said. 

Compared with the rest of 
the UK the incentives offered in 
Northern Ireland appear 
generous. They are certainly 
more special than the grants 
available in the special develop- 
ment areas of mainland Britain. 
There, building, machinery . and 
equipment grants are 22 per 
cent In Northern Ireland they 
are between 30 and 50 per cent. 
The Ulster package ; also 
includes interest relief grants 
to reduce the cost of borrowing 
for up to seven years. 75 per 
cent industrial derating and 
research and development 


grants of between ^ and 5ff 
per cent 

However, the size ci : the 
Incentives is more -than 
matched by the enormity of 
the problem. The economy, built 
on the three pillars of agricul- 
ture, heavy .. : engineering : i and 
textiles r has been '• severely 
squeezed. At the same tifljg tin 
flow of inward investment has 
largely dried up because of 
recession and fears T ; of-- political 
instability. -- 

There is a growjnfc view that 
the present system ' imam-' 
tives— largely- capital .based- 
may not be flexibie^enbagh to 
meet the competition -fnnn the 
IDA with its 20 per cent tas on 
profits until the year 2000. * 

“Looking at the. whole 
tore of industrial incentives we 
feel that, we have keen slightly 
hamstrung in the' past; con- 
formity to the UK matrix," 
said . Mr Richard Gordon, 
regional director of the- Con- 
federation of British Industry. 

Incentives 

“ I think CBI members in 
Northern Ireland would like the 
Government to investigate the 
possibility of tax-based incen- 
tives,” Mr Gordon adds; He 
believes that ministers: have 
implied over the past six months, 
it was something they were pro- 
pared to consider. But more 
important than fiscal changes, 
he believes, is the need far local 
politicians to give a greater 
priority to economic problems 
than ideology and. sectarianism. 

“ International companies are 
a very reluctant to invest ,in an 
area' where real politics are not 
happening,” he said. Potential 
• outside investors will. probably 
be watching the progress, of-fhe 
Government's devolution plans 
for the Province as closely as 
the emergence of the Ifidhstrial 
Development Board. 

One man who will be- watch- 
ing the IDE’s progress, "with 
particular Interest — one who 
believes there is plenty of room 
for improvement — Is Dr, Colin 
Tindall, a director of a hew com- 
pany Neotefc-MedicaL It wants 
to produce a .tiny automatic 
insulin pump for diabetics. 
Worn like a wristwatch it 
administers 400 small insulin 
shots a day. 

Neotek. which wants to manu- 
facture the. device in Belfast, 
approached _the Department of 
. Commerce for help. Six months 
later the application was 
referred to NIDA where it lias 
been f or Jtb? jirsJ J 8wqeks. 

“We are now looking for 
private capital," Dr Titidall said. 

Raymond Snoddy 



FT/27/4g 


Recent experiments on a simi- 
lar basis — that of forging an 
alliance between private capital 
and public funds— have 
attracted an enormous commit- 
. ment of private investment 
For example, in March £5m of 
urban programme money, the 
special government funds ear- 
marked for inner city projects, 
was allocated to low-cost home 
ownership schemes in inner 
urban areas. Approved projects 
are expected to attract up to 
£14m of private sector finance. 

Criteria 

The chief criticism being 
voiced against the new Urban 
Development Action Grants 
scheme is that funds have been 
spread too thinly,.. with 43 local 
authorities entitled to put for- 
ward projects. Critics also point 
out that the Government has 
not yet published its criteria 
for projects. It is still uncertain 
whether or not projects worth 
£lm or more will only be elig- 
able for funding. 

While the private sector may 
be drawn into inner city 
regeneration more forcibly by 
the U.S.-style UDAG it has not 
been inactive in smaller-scale 
community projects over the 
last few years. Scores of enter- 
prise agencies have been set-up 
throughout the country, with 
businesses in particular offering 
advice to eitber new-start 
businesses or small entre- 
preneurs. 

The London Enterprise 
Agency set-up four years ago 
by nine major companies, has 
been particularly active in 
extending its activities. For 
example, a joint company set 
up under its auspices is cur- 
rently renovating a 19th century 
warehouse in Tower Hamlets, 
East London at a cost of 
£600,000 in order to provide 45 
workshops for small businesses. 
Similarly a group of companies, 
led by Marks & Spencer, is 
exploring the possibilities of a 
new initiative in Brixton, South 
London, which would involve 
the local authority, financial 
institutions and local High 
Street businesses in putting 
together commercial ventures 
which would attract investment 

Part of tbe venture could 
involve twinning whereby a 
large company would take a 
particular interest at senior 
management level with a parti- 
cular inner city area with tbe 
possible provision of special 
training places allocated to 
people from those areas. 

The Government, in its March 
budget, introduced further in- 
centives to small businesses as 
well as extending tax relief for 
companies directly involved in 
job creation and inner city 
projects. Private sector contri- 
butions to Enterprise Agencies 
are allowed against corporation 
tax. in line with these t- 
'’h?ntiiers nf 


We want to 

work for you 
and for us 


\A4s are from 

South Wales from the valleys 
of the nver laff and the nver Ely. We are 
used to working and we wane to work. 

Our Borough, the Borough of Taff-EI/. 
has given us the opportunity to work by 
building fine new industrial estates near 
Pont/pndd just North of Cardiff. 

T he factory/ warehouse uruts '/ary in 
;e . . . are amazing value, and we are ju 
wanting to put our hearts into making 
businesses work, f -taking them work so 
we can work The premises are there— 
we are here. Lets make TalT-Ely work.. 




mtrfrntr 






TZS&gt ...... 



ipalg 


For more information and a feet pack, please contact 
CG. Prentice, Development Officer County-Buildings. 
FbntypricfdCF37 2TU Tefephone:Ftantypr^ 40644 1 
Full Government Development Area Grants available. 


we know about 
the growing business 
in St. Edmundsbnry . . . 


Bury St Edmunds 

A town named after a king, known for 
its history, charm and character, known also 
as a leading agricultural centre and market, 
and for che growth of the companies on.ies 
industrial estates. 

Haverhill 

A pioneer of town expansion with the 
Greater London Council. Bury St. Edmunds 
■was also an expanding town. 

for the industrialist 

Here at the Hub of East Anglia, both 
towns offer freehold and leasehold factory 
sites with all services. 

A good road system to all parts 
serves the individual estates, with Trunk 
Road A45 to the east coast and ports. 


for the workforce 

Good housing to buy' or rent Is readily' 
available. First-dass'shopping. Excellent' 
modern comprehensive schools. 

County College of Further Education^ 
Ample leisure-time activities with sports — - 
centres and indoor swimming pools, 

so this interests you 

and you want to know more? Get in 
touch whh Laurie Payne. He‘s the man in - , 
the know. . Let him fill In the details and 
show you round. 

This could be the beginning of- . 
something really big ... for you.' - 

Telephone Bury St Edmunds £3233 
(STD 0284) 

L. E. H. Payne; Development Officer . . 

TMngae House, Nortbgaie Street _'•« 

Bury- St Edmunds 





Financial Times Tuesday April 27 1282 

This iso 
complete 
list of all 
enterprisi 

ZONES in 
England 

which offer Enterprise 
Zone benefits, 

Special Development 
Area benefits, and 
Steel Closure Area 
benefits, i.e. 

10 years rate free, 

100% Capital 
allowances, 

Relaxed planning 
regime, 

22% Regional 
Development Grant, 
and E.C.S.C. cheap 
loans. 







The central computer systems of Scicon Computer 
Services, the computer services £ nd software 
consultancy operation, at Milton Keynes. The 
group's headquarters arc in the New Town. 


Where there are fully 
serviced freehold 
sites from Vz acre 
-upwards and 
factories available 
from 340 sq.ftto 
100,000 sq.ft 


for a complete 
UNIQUE 
ENTERPRISE 
PACKAGE 
write or phone 
EMoriey Industrial 
Development Officer 
Borough of Hartlepool 
Civic Centre, 
Hartlepool, England 
Tel: 0429 66522 


* 


Your nearest 
Airport 
TEES-SIDE 


A joint promotion agreement is 
helping to attract new companies 

Growth points 
go electronic 


THE SO-CALLED " Western 
Corridor" stretching along the 
M4 motorway from the outskirts 
of London to Bristol has been 
one of the most popular -areas 
for industrial development in 
recent years — particularly for 
electronics and high technology 
companies. 

The key development areas 
have been Swindon and Bristol. 
Both centres now have a high 
proportion of companies 
involved in potentially fast- 
growing activities and new com- 
panies with clearly defined 
expansion plans. 

Probably the most important 
arrival in’ the region has been 
that of Hewlett-Packard in 
Bristol. The U.S. electronics 
company \-.ill create about 7.000 
new jobs in the next seven to 
eight years— and it is hoped its 
arrival will encourage more 
electronic concerns to go to the 
region. 

Swindon’s smaller, though 
comparable, recent arrival is 
Intel, another XJ.S. electronics 
company. It now employs about 
200 people but will increase its 
workforce to at least 1,000 in 
coming years. The company 
has invested about £5m in a 
new building, housing its Euro- 
pean headquarters and 
customer service facilities. 

In the short term, the plans 
of some of these new companies 
may suffer setbacks — mainly as 
a result of the recession and its 
impact on demand for elec- 
tronic components — but there 
is a strong likelihood that 
medium term growth will be 
stronger than forecast. 

Until recently, there has been 
intense competition between 
Swindon and Bristol in attract- 
ing new investment, hut the two 
have now announced a joint pro- 
motion agreement which they 
believe will reduce costs and be 
of assistance to beth areas, par- 
ticularly in overseas markets. 

An element of competition 
will remain, but as each centre 
has . peculiar advantages of its 
own. serious conflict is con- 
sidered unlikely. The move has 
been welcomed by the Depart- 
ment of Industry which is 
concerned at the level of com- 
petition, in attracting particu- 
larly from the U.S.. between 
different areas of Britain. The 
Department believe it could 
prove to be against the interests 
of the country as a whole. 


Competing 


Mr Claude Draper, leader of 
Bristol city council' said, when 
announcing the Business 
West ” alliance between Swin- 
don and Bristol, that both 
centres faced fix? problem of 
competing against assisted areas 
which offered government 
grants to incoming industry. 
The two had. nevertheless, been 
successful in using ratepayers’ 

funds to help the regeneration 
of industry’, but -now both local 
authorities felt that they could 
penetrate the investment 
market more effectively to- 
gether than on their own. .in in: 
promotion activities will be 
funded out of existing council 
budgets. 

One area when? the dual 
approach is expected to gain 
better results is spending on 
overseas advertising. A com- 
bined campaign is designed to 
sell both centres as an entity 
rather than in competition. 

One reason for the increased 
efforts to stimulate growth has 
been the constraints the local 
authorities believe are being 
placed on them by the Govern- 
ment through spending cuts, 
and in Swindon’s bv the local 
Wiltshire county council’s oppo- 
sition to further expansion. . 

In fact, both Swindon and 
Bristol have experienced 
severe contraction of existing 
industries, notably those in 
mechanical engineering. This 
has meant that despite the 
.arrival of new companies un- 
employment lewis have re- 
mained broadly stable. 

In Swindon, about 8,500 people 
are currently unemployed, 10.3 
per cent of the population. The 
number rises to about 12,000 


REGIONAL DEVELOPMENT VH 




Swing of the political pendulum divore 

New Towns* Dili 




\ / -'f* 

V2* -7* 









THE driving force behind the The political pendulum has the mdmdofll - populittotfc 

creation of the new towns by also swung away from new have b|^remaiia»e>f. 

the post-war Labour government towns. Inner urban regenera- Aycuffe ban ns |fepaLanan ofejfc 

was also one of the greatest tion is fixe new fashion. People m * , ; , a " 

sceptics about their usefulness, and companies are being urged womate .-t qgt-.tf 

“ A leap into the unknown " is through a variety of Initiatives : : aMtpetrnuai w 


mm Sfito h? jnctage -secbuiilhiiianaMnt and 


iL\'uAicbGQmrinM«. ***** 

ito boih ftMBQfto create jobs maw more 


than similar tailbacks do in 
other 

■ The second is that the w**' 
towns fare exceptionally badly 


-a leap uno ine imioiowii is tnrougn a variety oi mmauves rj“r;r w 7 - ~ , ■ r%Mfj.rmn*nrc contra* 

how Mr Lewis SlUdn, the then and incentives to stay in urban 47.500 to » yeans and ^bas Sflative into the to per -rftfca. Wider 

Town and Coun^ Planning area or -move Into dty centres 

Minister later described their which have been dec li n in g 3 succegsfnl in to floS 

sanction me socially and economically for * # waa WjOWin 1081 aiid is x investment -Mflton .KtjuM . mao diooc a 

sancuu ius. soc^ aro eKfflomirauy ^ aiming for 200,000. ■ Peterlee alone has 90 manufaCturinr and councils. The results across a 

Post-war Britain faced a more moved from 200 to 25,50a with a. * sSauSoStStea wtthftSelgn tko& of imfiratort importjgt 

^ tluiving. ^ final target of 30.000. In Scot- wntage. including 12 from Ja new towns coupled with tjw 

a^d plannin 0 crisis. Silkin felt Howerer, the new towns have jajyj the 3.000 in Cumbernauld SnS gh imot . - eifcbt . . from . Seemingly deBbentte refusal of 

the emphasis must be on oqr been in many senses a remark- m 1955 were 50.700 in 1981 and: . s^jirtavu^d six Iran Japan: Environment Department .cWl 

rthwmmg. and high density able -success story and, given will eventually be 70,000. Irvine The latterurobebly -accounts servants to compensate properly 
w< *}to. accepted m the changes in political and moved from 35,000 to 60,000 : the fact toaHtalso has the for the rapid population to- 

3*“®*®* thought in Britain - between 1966 and 1981; and is a — t nujor Janfifiese rEStauraM creases to the new towns, has 

bemg. at Irest, only a minor since 1946 it is remarkable that half way to its target. Living- in Attain outside led to them receiving allocations 

supplementary expedient it ^ taken this long for a stone, a mere 2.100 in 1962 had London ' which do not, on any statistical 

Since then Lewis Silkin has party in power at Westminster 39,000 inhibitants in .1981 and - However not- everything basis, bear any relation to their 
been proved both right and to turn hostile- That hostility will eventually have 100,000. about new’ towns displeases the actual circumstance*, 

wrong. New towns achieved a may. change the concept of the ih^se figures have a greater Government There can be no Mr David HaD. director of the 

popularity undreamed of when new towns bnt it will not importance than mere . popula- doubt that the proposed answer Town and Country Planning 

the first- Stevenage, was change their achievements. tion statistics. They represent two ot Britain’s major urban Association. criticising the 

designated in 1946. The great the extent to which lifestyles. : Problems — the creation of Government’s attitude to new 

planning fashion became to ft™ and social conditions changed 4jfca n development corporations towns wrote last year that they 

transfer population out of old & quickly for a large number of far the redevelopment of the were the most efficient agencies 

urban areas into the fresh air The first generation com- nmnin *nfl ih«r- families.- It is imi Mprw)<nd<> vet devised for stimulating 


since 1946 it is remarkable that half way to its target- Living- *_ j- Britain outside led to them receiving allocations 

it has taken this long for a stone, a mere 2.100 in 1962 had London ' which do not, on any statistical 

party in power at Westminster 39,000 inhibitants in 1981 and - However not- everything basis, bear any relation to their 
to turn hostile. That hostility will eventually have 100,000. new ’towns displeases the actual circumstance*. 


there, rather than in the tradi- 
tional city areas. New towns and 
new^ohs boomed. 


may. change the concept of the these figures have a greater Government. There can be no Mr David HaD. director oC the 
new towns but it will not importance than mere . popula- doubt that the proposed answer Tow and Country Planning 
change their achievements. tion statistics. They, represent- Ifr two of Britain's major .nrtwm Association. criticising the 

the extent to which life-styles ijiroblems — ' the creation of Government's attitude to new 
Rina and social conditions changed drban development corporations towns wrote last year that they 

& quickly for a large number of fa* the redevelopment of the were the most efficient agencies 

The first generation com- people and their families.; It is London and Merseyside yet devised for stimulating 

prised a ring around London — no exaggeration to say that the .docklands— is based firmlv on growth. " The Government ha* 
Stevenage. Crawley, Hemel new towns provided gardens and concept Of theNew Town blinkered itself from the fact 

Hempstead, Harlow, Hatfield, greenery for hundreds of -thpc- ; development '*'■ Corporations, that efficient public enterprise? 


generation 


and green fields of the new prised a ring around London — no exaggeration to say tbBt the fork! sods— is 

towns and to encourage com- Stevenage, Crawley, Hemel new towns provided gardens and JL, concept 01 

merce and industry to s et up Hempstead, Hhrlow, Hatfield, greenery for hundreds of -thpu- ; s^elopiMnt ' 

rather than in the trfldi- tit.i r. “t - . !» - 


Welwyn Garden City, Basildon sands of people who might 


the .nes. bodies have can provide a vital stimulus to' 


and Bracknell. In tiie same otherwise sever have seen any been sHocated greater powers, private sector initiatives of ail 
period up to 1950 the depressed in their daily live^— not to 


New towns are now timwghly North- East was relieved with mention modem housing and . . . _ 

out of fashion. One tfter the creation of Aydiffe and sanitary facilities for people UenCIi • doubt that new towns are in for 

another new town development Peterlee new towns, Corby was from deprived and often war- The financial results for the a tough time. That may make 

corporations are being dissolved designated in the Midlands, ravaged cities, which the firstf - neiv 1 towns in the year to March j{f e economically more difficult 

by the Government, assets are Cwmbran in Wales and East generation towns, in particular, -1981 show . the extent of public f or them, their business and 

being transferred to the Com- Kilbride and Glenrothes in provided. sector involvement-! General ^eir residents, but it will nor 


Deficit 

The financial results for the 


kinds," he said. ; 

Blinkered or not. there hi 30 
doubt that new towns are in for 
a tough time. That may make 


being transferred to the Com- Kilbride and Glenrothes in 
mission for New Towns and pri- Scotland, followed in the mid- 


when the surrounding ttaveKo- 
worfc area is included. Accord- 
ing to Mr Douglas Smith, 
industrial advisor to Thames- 
down borough council, Swin- 
don’s local authority, job crea- 
tion has broadly kept up with 
losses but problems still remain. 

There is considerable dis- 
appointment locally over cut- 
backs bv British Rail Engineer- 
ing, which resulted largely from 
the recent rail strike and its_ 
impact on BR’s cash resources. 
BR has announced that it W» 
rut 1.200 jobs at Swindon by 
December next year and the 
works has stopped recruiting 
apprentices. 

There is also concern over 
the possibility that BL Pr ^sed 
Steel Fisher, a major local 
employer producing ar body 
components for a range of BL 
vehicles, will reduce the i num- 
bers employed in line with cuts 
elsewhere within BL. The work- 
force has already fallen from 
about 5.500 to 3,500 in recent 
years. 

Attracted 

.As a counter to this, a steady 
flow of smaller companies has 
been attracted to Swindon, with 
10 arriving in the past six 
months. -However, the numbers 
involved have been compara- 
tively small and the growth of 
local concerns has been 
restricted by the recession. 

There has also been a notable 
move towards more white collar 
jobs in Swindon. Its location 
within easy reach of London 
has attracted a number of 
insurance companies and 
administrative headquarters of 
large concerns. These include 
Hambro Life, and more recently 
Lowndes Lambert and National 
Employers Mutual, each creat- 
ing about 400 jobs. W. H. Smith 
has decided to move its head 
office to Swindon by 1984 and 
Philips, the Dutch electrical 
group, will indicate by the end 
of this month whether to take 
up an option on land in the 
town centre for offices. 

Swindon has recently 
launched a campaign to attract 
London-based companies to the 
town, pointing out that prime 
office space in London is now 
costing about £30 a square foot, 
when rates are taken into 
account, while the figure for 
comparable space in Swindon is 
about £10 a square foot. 

All these measures are based 
on assumptions that the local 
population will grow from its 
present level of 160,000 to about 
200,000 by 1990.' The local 
authority believes this growth 
can be managed under its pre- 
sent housing expansion pro- 
gramme, and that there is 
enough industrial land to accom- 
modate industrial expansion. 

In the greater Bristol area, 
around 40,000 people are unem- 
ployed, 10.3 per cent of the 
population. Like Swindon, this 
is below the national average, 
but recent factory closures have 
also caused concern. 

The most serious of these has 
been St Annes Board Mills’ 
Bristol mill, where 1,500. jobs 
were lost. A further 900 people 
were made redundant through 
rbe closure of a Robertson’s jam 
factory. 

There have also been cut- 
backs at a number of Imperial 
Group tobacco plants, and the 
recently announced closure of 
a number of factories within the 
group over the next few years 
will also effect Bristol. 

Mr Mike West, head of the 
council's economic development 
unit said that job creation bad 
almost kept pace with the most 
recent loss of employment. 
About 60 small companies bad 
been established in a recent 
four-month period, and there 
was a high level of inquiries for 
assistance by new concerns. 

One of the largest industrial 
developments of Its kind is 
taking place m Bristol. The 
Aztec West high technology 
industrial park, is attracting 
renewed interest after a slack 
period in the past few months. 

Lome Barling 


rate sector funding will be 1950s by Cumbernauld. 

2? t rf Usu !“ The second phase towns were 
1 designated in tiie early 3960s 
growth and expansion. and the third and final phase 

The new towns, even the ^ late 1960s, the final new 
third generation “new new town being central Lancashire 
towns,” are no longer new. The set up in 1970, bringing the 


The second phase towns were towns have "had in .attracting 
designated w the early 1960s commerce and industry. - In 


realities of the rest of the world total in Britain to 28. 
have caught up with them; tin- The population growth -of the 
employment is rising, some new towns has moved from 
factories which opened in a L16m in 1961 to 1.43m in 1971, 
rush of enthusiasm during the a rise of 23 per cent, and then 
1950s and the booming 1960s up to 1.73m by 1981, a further 
are contracting or pulling out jump of 21 per cent Some of 


Kilbride and Glenrothes in provided. sector involvement-: G enera l ^ residents, but it will nor 

Scotland, followed in the mid- These people have also bene- • reretxae (before tax) against alter the general improvement 

1950s by Cumbernauld. fited from the success tfce -new fdtgjwafa (beforeta) produced ,- n heajtj,; muf living conditions 

The second phase towns were towns have Hid iH .atjtfacftog W whJch tbey have provided, 
designated w the early 3960s commerce and industry. ■ In townioertoftom UMKrfrvnrnment a book about the story of 
and the third and final phase spite of some closures, cut backs 31 19S1 totalled Harlow by Sir Frederick Gib- 

in the late 1960s. the final new and rising unemployment as the f3 r° 5bn - „ _ : . berd. Its architect-planner, 

town being central Lancashire recession encroaches, there are • Two tf the miKt serums diffi- finishes vrith the thought that 
set up in 1970, bringing the still just under lm jobs in eplttos facing the new town* Sir Christopher Wren's epitaph 

total in Britain to 28. Britain’s new towns— and all have notmng to do with how might also be appropriate for 

The population growth of the the towns are engaged in ex- they are designated by Govern- new towns: Lector si mow 
new towns las moved from tensive- campaigns to create and menL One is that a key to meniarn requhis ctrcumxpice — 
LI 6m hi 1961 to 1.43m in 1971, attract more. ^ their success in attracting em- Header if you seek -a monument 


and the third and final phase 
in the late 1960s, the final new 


ui uic MIC iJuua, uit uu<u r--v — rr. jin- 

town being central Lancashire recession encroaches, there ate • ?f. the most senaus diffi' 

set up in 1970, bringing the still just under lm jobs In cnlties facing the new town* 


This large scale attempt by ptoyment depends on housing, 
new towns and others to attract and the sharp cutback in their 
more businesses is starting to housing programmes by toe 


their success in attracti ng em - Header if you seekn monument 
payment depends <m housing, amund you. ■- . - 


RobraPaufcy 






gfry 


The face offish industry has changed 
dramatically in recent years. 

So, indeed, has the face c£ our workforce. 

In feet, most of what we produce these 
days comes fiom above groimcLBather than 
below it 

Which has to be a change for the better. 

Yes, there have been redundancies. 

But there have also been thousands of 
newjobs created-Notably as a result ofrapid new 
developments in engineering and the arrival of 
the high technology industries. 

The feet is, these two alone now account 
for around 40% of people in Wales employed in 

manirfar ti i ringi . 

. Were host to a host of householdnames. 

Like Sony. Whose chairman, McAlrio 
Marita, has recently gone on record as saying 
ftiie pixxfectivity and labour relations ’at his 
L Bridgend plant are every bit as good as bade 
1 home. 

Small wonder then that Sony’s nearest 
iivallives practically next doon 

-Ifcu see, the GEC-Hitachi people produce 
wfBtafi their-colonrTVs for the British market 
HBK in Wales. . . . 


THE FACTS ABOUT OUR WORKFORCE 

IN BLACK AND 


precise.. 


Terranti. And we recently welcomed Mitel and 
Irimostot^'feld. . ' V - . : 


mgZ'Sr*-* 


Of course^ we’re delighfed by the arrival 
•. ofsoinaiyiii^feo^ 

; - And, whatever the size of your business, 

’• -^..^Js^b^l^tas.pleased to.seeyouis.'-- •; 

" more infenmation, call TedOeaweley 

f .S‘ ieff D^yidMorgan onTrefprest (044385) 2666. 
'Qcconiplete thecoupon. 




A .y .. v ■</ £ 

‘ r-v. 'ijVv-Srh 




mm 




■A’*! . ’.f}? » aSTm &. «{ 


Please ^ d me t h efectstm how my business qoulri 
fipmamOTctoWfeks. ; 

t *’[ fa 'If h Idu ttHdiiipitfliiTiA ■ 





a «- - • . . -■ 

^ ; : - ; ■ ; F - T - 1 7 ^ 
^W^I>vck5JnMuAgt^ r PDn£y^^ - 

- ^GW^cnrsux 

’A- (4% . .. ■ - ? • . 










iA.v.1 




' 3 3F&?: 


vm 


Financial Times Tuesday April 27 1982 : ^ 


Sit down, 
grab a pencil 
and compare 
Newport 
with your 



f The Need 

Your Ideal 

Newport | 

| How many minutes from: | 

Major East/West motorway 
junctions? 


10 

Major North/South motorway 
junctions? 


25 

j 

Main line rail links to London and 
the North? 


10 

Container ship facilities? 


10 

The town centre? 


5 

A local airport? 


35 * 

A major international airport? 


90 

The centre of London? 


125 

Real, unspoiled countryside? 


15 

Beautiful, relaxing coastline? 


20 

II 

What is the workforce within a ten 
mile radius? 


169,000 

How good are labour relations 
locally? 


Excellent 

What is the total industrial acreage? 


450 

Are there ready-made factories and 
warehouses to let? 


Yes 

Below £2.25 per square foot? 


Yes 

Is there a choice of small and large 
plots? 


Yes 

Is it a Development Area? 


Yes 


Now write to Steve Wehrle or Gareth Isaac for the fall story. 
Or telephone them on 0633 56906. 


(please send me full details on development in Newport!] 


I 


Position* 

1 

Company? 

| 

Address* 

1 


Telephone: * 


I Borough of Newport, The Civic Centre, Newport, I 
Gwent. NPT4UR ~ 1 



REGIONAL DEVELOPMENT VIE 


^-rr- 


Docklands zones looking for growth 


THE INAUGURATION of 
Britain's latest enterprise zone 
in the Isle of Dogs yesterday 
Is expected to signal the final 
bursting into life of the London 
Docklands Development Cor* 
p oration. Until now the coi> 
po ration has been ges fating and 
getting ready to dash for 
growth. Next month will see 
a vigorous media campaign and 
from (hen on the LDDC is 
expecting to be very busy 
indeed. 

It already has a pacoseid&g 
example to follow, and one 
which amply demonstrates the 


and Newham delayed the 
LDDC’s vesting day until July. 

However, time has been only 
one factor. Far more important, 
though coincidental, was Tox- 
teth’s civil disorder last 
summer. This focused world 
attention on Merseyside’s 
decline and its massive struc- 
tural problems of long-term 
unemployment Law and order 
issues aside, the region's need 
for rapid industrial develop* 
meat became a political hot 
potato that the Government had 
to be seen to be handling. 


one other factor, and probably 
the most important, lit ail 
management, someone has to 
make things actually happen, 
and most influential people on 
Merseyside, therefore, knew 
that the MDC would move 
rapidly simply, because one of 
the most able industrial leaders 
in the private sector had been 
appointed its chair man. 


Style 


is the Merseyside 


of bringing redundant 


Several influences converged 


powers for land 


independent planning 


The MDC. answerable directly 
to the Environment Secretary 
and with its ability to get on 
with the job without reference 
to local government, provided 
a handy instrument Further, 
the Environment Secretary, Mr 
Michael Heseltine, was also 
appointed temporary Minister 
■for Merseyside after his post- 
riots, on-the-spot investigations 
of what was wrong with the 
region. Given his state of 
almost perpetual conflict with 
many local authorities over 
budget pruning, the MDC 
offered an obvious way of being 
seen to deliver some solutions. 
He even used the MDC offices 
as his base during his investi- 
gations- 

All of this, however, ignores 


Mr LeShe Young already had 
an impressive record as chair- 
man of the Liverpool-based 
industrial and agricultural con* 
glomerate, J. Bibby and Sons 
Ltd. Bibby was near collapse 
in 1970 when he was appointed 
its chief executive. Since then, 
the company's market capitalisa- 
tion has increased by more than 
3,000 per cent and city sources 
see Mr Young, and his pace and 
style of management, as the 
principal reasons for recovery. 

The style is one of wide 
devolution of power throughout 
Bibbys’ nationwide organisation, 
but with strict accountability on 
meeting easily understood tar- 
gets, such as returning at least 
20 per cent on all capital 
employed. He is also strong on 
consultation with employees and 
shareholders — the comp Shy’s 
annual report, for instance, has 


Progress of Enterprise zones 


TO THE accompaniment of 
widely varying views on 
exactly what their Impact 
would be,- the first of Britain's 
11 enterprise zones came into 
operation almost a year ago. 

Supporters of the idea — first 
put forward by the Chancel- 
lor, Sir Geoffrey Howe, while 
still in Opposition— argued 
that the designation of sites 
where business eonld set np 
with a minimum of red tape 
and even more Importantlv 
free of local rates, would 
release a new tide of entre- 
preneurs. 

ODDonents were more 
"cepHcal. clalmine that in a 
"CftTiomic climate 
the more likelr result would 
tie sitnniv the movement of 
business from onf^ide the rope 
to within It. nnd»rmin ! »ig 
property prices on the 
periphery. 

Consultants anpointed !»v the 
Department of the Environ- 
ment to monitor the progress 
of the zones will he able to 
pronounce which of those 
views is correct when they 
report their findings at the 
end of the year. What is 
clear, however, is that a num- 
ber of developments have 
hepn stimulated in areas 
where lettines previously had 
hoen slow, and some new jobs 
created. The most significant 


as reported by the Department 
of the Environment In its 
latest review are: 


SALFORD /TRAFFORD 


Private developers are to 
construct 25,000 sq m of 
speculative industrial units 
on land owned by Salford City 
Council. The Manchester 
Ship Canal Company has also 
started in f ra stru c tu re works 
(with Urban Programme sup- 
port) to service a 9 ha deve- 
lopment site In the Salford 
Docks. In Trafford, projects 
providing 40,000 sq m of new 
or refurbished industrial 
floorspaee are committed or 
under construction. There is 
a steady take np of premises 
fn the new industrial estates 
included within the EZ. 


WAKEFIELD 



You probably know Hysten They’re one ofthe 
world's largest manufacturers of fork lift trucks. 

Yet even for Hyste^ 60 million dollars is a lotof 
money. 

And, as Chairman William Kilkenny explains, its 
investment in Northern Ireland rather than elsewhere in 
Europeans based on a ruthless evaluation ofthe facts. 

Three of them were decisive. 

“First manpower. Northern Ireland has skilled 
people with a real, old-fashioned enthusiasm for bard 
work - and a Government with the best training- 
schemes and facilities in the EEC to back them up? 

“Second, infrastructure. We were most impressed!’ 

“Particu larly by the modem highways and easy 
access to the major port facilities at Belfast which will 
enable us to export as much as 85% of the Northern 
Ireland plant's production outside the UK? 

“Third . mmmnnfrarinns.The area’s ability to 
service our worldwide dealer network because ofits 
land and sea transportation facilities? 

It all adds up. 

First-time American Investment in Northern 
Ireland over the past 3 years adds up to nearly $400 
million, and another $80 million comes from the 
continued expansion of American companies already 
here. 

Sentiment had nothing to do with this inflow ofl3 
new American firms compared with 24 in the 
previous quarter century It was all based on facts. 

Northern Ireland offers the most attractive package 
ofincentives in Europe, a feet borne out by an 
independent study carried outby the authoritative 
Plant Location Internationa]. 

And you’ll find Northern Ireland just as interested 
in a joint venture or licensing scheme as in helping 
you in a green-field start to manufacturing. 

So get th e facts. Have your secretary send in the 
coupon todav. Or phone Louis Ritchie at the Ulster 
Office, 01-493 060L 


NORTHERN IRELAND: 

THE OPPORTUNITIES ARE THERE. 
THE PROFITS ARE THERE. 


Louis Ritchie, industrial Development Organisation for 

Northern Ireland, Ulster Office, H Berkeley Street, London W1X6BU. 
Telex: 21839. 

Please sendme more information on Northern Ireland, 


Name 


Position 


Company 


Address 


Telephone 



NORTHERN IRELAND 



nnlis, providing 2,000 sq m of 
floorspaee, have been com- 
pleted and are folly let 
Herman South, in conjunc- 
tion with an American 
company, plan a new plant to 
supply high technology com- 
ponents to the United States. 


HARTLEPOOL 


Twelve development pro- 
jects or new lettings under 
active discussion, 800 sq m of 
new factory floorspaee under 
construction and seven pre- 
viously vacant premises have 
now been let with a net addi- 
tion of abont 50 jobs. 


CORBY 


Land disposals have been 
agreed for three projects pro- 
viding in all around 55 new 
industrial units and a further 
two warehouses to be built 
for owner occupation. Two 
out of five previously empty 
factories are now occupied 
with a net addition of 55 jobs. 


DUDLEY 

Projects providing 17.000 
sq m of floorspaee in specu- 
lative industrial units are 
under construction. Tea 


Nearly half the land in the 
zone has been disposed of or 
firm options taken out and of 
this almost half is already the 
subject of specific develop- 
ment proposals. Six private 
companies are currently 
huildinsr factories; for their 
own occupation and several 
more have bought, or are in 
the process of buying, land 
with the intention of doing so. 
The first phase of 12 factories 
built by the New Towns 
Commission have been let 
and it is now constructing a 
further- 30,000 sq m of 
advance units. Another com- 
pany is investing 525m in two 
projects (a flour mill and a 
starch factory) for which con- 
struction is under way. 


TYNESIDE (NEWCASTLE/ 
GATESHEAD) 

In Newcastle, Vickers has 
begun construction of its 

36.000 sq m new premises at 
Scotswood and a small deve- 
lopment of speculative units 
has also started. In Team 
Valley, EXE has completed a 
development of 24 units, a 
further 7,500 sq m of private 
factory and warehouse floor- 
space are under cons traction 
and 14 projects have reached 
various stages of negotiation. 
Elsewhere in Gateshead. 

7.000 sq m of warehouse/ 
factory floorspaee arc under 
construction and negotiations 
are proceeding on three 
further projects. 


SPEKE 

EIE managed to compare 
Its development of 68 indus- 
trial units by the end of the 
first quarter of 2982. Clear- 
ance and demolition on the 
Dunlop site are well under- 
way. Discussions are proceed- 
ing on the servicing of the 
airport laud and refurbish- 
ment of the BL factory. 


SWANSEA 

Forty-seven companies have 
moved Into or set up in the 
zone since (he E Z announce- 
ment, of which seven arc new 
ventures. Construction oF 
11,000 square metres of 
floorspaee has begun since 
designation, a further 30,000 
square metres is committed or 
proposed. 65 per cent by pri- 
vate firms or developers. 


CLYDEBANK 

Since the EZ announcement 
82 companies with a total 
potential for 950 new jobs 
have moved into, set up or ex- 
panded in the zone. Of these 
32 are entirely new ventures. 
30.000 square metres of floor- 
space is currently under con- 
struction and a further 20,000 
square metres is committed. 
Radio Clyde to huild a new 
£2m office/studio complex. 


BELFAST 

Eight projects For conversion 
or redevelopment under ac- 
tive discussion. A further 
four new warehouse develop- 
ments have started on rite. In 
the North Foresfiore area of 
the zone ten companies are to 
occupy the whole of a 24 acre 
site. 


ISLE OF DOGS 

Six major development pro- 
jects in various stages of 
negotiation including The 
Daily Telegraph which has 
plans for a new production 
plant which would provide 
more than 2,000 jobs. Eight 
temporary lettings of existing 
premises agreed. 


won prestige awards. 

Almost inevitably, then, this 
style is evident In the MDC, 
where things have .moved with 
quite striking speed. The pace 
has even astonished some of 
the MDC’s own staff. “I used 
to work in local government 
and Tm still reeling from the 
contrast,” one of them told me 
recently- “It’s the. private- 
sector involvement that, makes 
all the difference.” 

That involvement is crucial, 
for the MDC operates with 
fewer than 50 staff of its own, 
headed by Mr Basil Bean, who 
already has a successful record 
in industrial development at 
Northampton. When specific 
expertise is needed, companies 
from the private, sector are 
brought in. A network of archi- 
tects, engineers, designers, 
planners, builders and contrac- 
tors can be put to work rapidly. 

By August last year the MDC 
had published its initial de- 
velopment strategy and was 
consulting local authorities, 
local industry and commerce 
and, through public meetings, 
the people of Merseyside. 

The strategy, now being im- 
plemented, has three main 
planks. The first is to restore 
water to Liverpool’s south 
docks. These fell into disuse 
2D years ago as containerisation 
and other bulk-carrying ad- 
vances shifted the port’s traffic 
northwards to the new purpose- 
built docks at Seaforth. Unable 
to afford maintenance, the Mer- 
sey Docks and Habour Company 
opened the locks and the south 
docks filled up with heavily pol- 
luted silL 

Mr Bean says that it will cost 
the rt thick end of £20m ” to put 
water back, a cheaper option. 


incidentally, than- filling in the' 
docks, for the silt would still 
have to be removed. He is con- 
fident that the eventual environ- 
mental advantages and attrac- 
tiveness will be worth it. . 

Part of the attractiveness 
arises because the MDC -is tak- 
ing over the historic Albert 
Dock, a waterside complex of 
listed buildings that, even 
though derelict, are impres- 
sively elegant. This wiU .be 
home for much of the Mersey- 
side Maritime Museum, with 
floating exhibits, and the pro- 
posed northern branch of the 
Tate Gallery. It will provide 
a major focus, and leisure 
centre In the ' heart of 
Liverpool. 


Reclamation 


Another plank of the strategy 
involves reclamation of land in 
Bootle where warehouses: hod 
become redundant These have 
been demolished, small units 
are already being built and 
plans are well ahead to improve 
not only The sites but their 
surroundings and accessibility 
to them. 

The third part of the strategy 
will have considerable inter- 
national impact It involves the 
reclamation, already well under 
way of 250 acres comprising an 
old dock several tank farms 
and an unstable tip. Here in 
1984 the first British inter- 
national garden festival will 
be staged. The Queen has 
agreed to be patron of the £13m 
festival and more than 3m 
visitors are expected from all 
over the world during the six 
months the event will run. 

After the festival half the 
site will be turned over to 



PROFILE: 

VINSON 


NIGEL 


Belief in 
the task 


MR NIGEL VINSON, chair- 
man of the Development 
Commission, the modest 
quango charged with "the 
regeneration of rural 
England, could not, it seems, 
be better equipped for his 
task. 

As the fiflh son of a Kent 
fanner he realised early in. 
life “ there would be no farm 
for me ** and like many other 
fanners’ sons began making 
his own way in the world. 

In Nigel Vinson's case this 
meant developing a new 
process for coating metals 
with plastic and setting np 
his own company. Plastic 
Coatings, in 1952 in a Nissen 
bnt In Guildford. When 
he gradually relinquished 
control to Imperial Tobacco 
from 1971-73 the company 
was employing more 'than 
1,000 people and has 
continued to grow since. 

It was then that he began 
his M second life n as the 
holder of a formidable array 
of publle posts. They have 
included being honorary 
director of the Queen’s Silver 
Jubilee Appeal, a director of 
the British Airports 
Authority, 'deputy chairman 
of the Small Firms Council of 
the Confederation of British 
Industry, a leading member: 
of the Design Council, a 
director of the Centre for 
Policy Studies and President 
of the Industrial Participa- 
tion Association. 

As chairman since 1980 
of the Commission, which 
spends about three-quarters 
of its £20m annual budget on 
advance : act ones in rural 
areas, Mr Vinson’s “ two 
lives'* have come together. 

The Commission, and its 
main opera ting arm. the 
Council for Small Industries 
in Rural Areas, has built 
500 advance factories over the 
last nine years and plans to 
build a similar number oyer 
the next seven. 

A small Industrial estate, 
for Instance, had trans- 
formed a coastal village 
such as Hunmanhy in the 
North Riding, left with little 
when the North Sea herring 
deserted the area. 


‘‘The wind is blowing our 
way," Mr Vinson believes- 
Apart from parts of Durham. 
Northumbria and Cumbria, 
the depopulation of the Eng- 
lish countryside is being 
arrested and Mr Vinson 
believes that, over tiie next 
25 years, there is likely to he 
a gradual social revolution as 
new technology allows more 
and more people to combine 
living and working in beauti- 
ful rural areas. 


Raymond Snoddy 


housing and factories. Tb&rest 
Will be left as permanent 
leisure facilities that ^ iriU- 
include an indoor, .recreation " 
‘centre an international claSs 
athletic track, and 'riverside 
walks and parkland. .. v- _ •••: 

In the ' south docks ' 
selves. BAT Industries provided 
the first private sector involve- 
ment in a £750,000 joint .venture 
with the MBC to convert - an old' 
transit shed into: ^enterprise 
workshop! Significantly, the 
shed's postal address^ is ; in, ■ 
Toxteth. 

Meanwhile in Laddon- the 
LDDC has been gefCta^ ttfgrifls 
with a. larger scale of problem. . 
Its area covers 5.100 acres, com- 
pared with the MDC’s 865. At 
£65 tq, its first year budget was ' 
nearly four times as .much as 
the MDC’s and two-thirds of this - 
was spent on land acquisition, - 
mainly from the Port of Loudon 
Authority, and rii -rite .prepara- 
tion that included the demoJS- 
tion of 2m sq ft of unusable 
old buildings. • ' v- 

London’s big advantage; T of 
course, is the very fact of- bring, 
London. . The LDDC’s powers 
give it a unique opportunity to 
develop, in a coherent manner, 
one of the most “desirable" 
riverfronts in the world with- an .■ 
imaginative combination - of - 
housing, industry and con^\ 
inerce. As spokesman Mr Peter 
Turlik puts it: "Up -to now we 
have been merely preparing the' 
stage. Long term, our problem 
is not going to be filling the 
area up. It is going to be one 

of selectivity.” 

It ?« the son of problem that; 
Merseyside wourd love to haye. _ 

Ian Hamilton Fazey 


COVENTRY 


N/miim CHOKE. J 

I STARTING OUT -EXFfiNDMI^Ra OCATlNG;.. 
Wm - CHECK THESE FACTS- 


STARTING OUT . - - Generous financial assistance. 
Minimum interest loans or reduced or free rent to give 
you a great start. 

•EXPANDING... A wide range of sites, factories, offices 
and warehouse units In varying sizes, many fer 
Immediate occupation, plus an abundance of skilled 
labour. 

RELOCATING ... ideally situated at the hub, of the 
motorway and inter-city rail networks with Coventry 
Airport on the doorstep, Birmingham international 
Airport National Exhibition and National Agricultural 
centres only minutes away. . 


Contact: Sue Pain, 

Homes & Property services Department, 
. Council House, COVENTRY CV1 5RR. 
Telephone: (0203) 25555 EXtn.2073 



INDUSTRIAL PROBLEMS 
SOLVED IN LINCOLNSHIRE! 


on 


0522-29931 now and 
find YOUR route out! 




in' 


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Financial Times Tuesday April 27 1982 


\V T h 


MEXICO’S INFLATIONARY SPIRAL 


Lombard 


ISr 

* f 


The ‘oil 



turns sour 


By William Chislett in Mejqco City 


THIS WILL be a more than 
usually lough year for Jose 
Ruiz, aged 13, as he scrapes a 
Jiving picking through the 
mounds o£ plastic bottles, tin 
cans, leftover food and other 
junk at the enormous rubbish 
tip at Santa Cruz Meyehuaico, 
near Mexico City’s airport. 

On a good day he can now 
earn 100 pesos ($2J2Q) which 
used to go quite a long way in 
Mexico. But no longer. 
Mexico's rate of inflation is now 
forecast to be about 60 per cent 
Ibis year, double that in 1981. 

Ask Jose about Mexico's mas- 
sive oil wealth (the country is 
the world’s fourth largest pro- 
ducer and its reserves could 
eventually match those of Saudi 
Arabia) and he looks bemused 
with eyes which betray a life 
of misery, and malnutrition. 

Jose does not, of course, speak 
for aH Mexico. But he does 
represent a significant chunk 
of the 70m population, half of 
which is under the age of 15. 
There are about 10m. “ margi- 
nal! os,” like Jose, and some 40 
per cent of the 19m workforce 
still does sot have a per- 
manent full time job. 

Mexico’s “ oil miracle " is 
turning sour. Apart from spiral- 
ling inflation exacerbated by 
the floating of the peso (which 
has been effectively devalued 
this year by 40 per cent), the 
country is having to come to 
terms with a sharp cutback in 
economic -growth from 8 to 4 
per cent a year, a total public 
and private foreign debt pf 
almost $70bn, the world’s 
largest, huge budget deficits and 
a growing outflow of capital. 

The peso was floated two 
months ago after a $6bn drop 
In oil revenue projections 
caused by_the world oil glut, 
and free domestic spending. 

To make matters worse foe. 
the government of President 
Jose Lopess Portillo, these prob- 
lems have to be tackled at a 
time when the Institutional 
Revolutionary Party (PRI), 
which has ruled Mexico unop- 
posed for 53 years, is facing un- 
precedented opposition from 
newly legalised light and left 
wing parties competing for the 
first time in the July 4 general 
elections. 

Political reform, designed to 
channel dissent through an 
institutional framework and 
avoid the social upheavals of 
most ..of the rest of Latin 
America, has already spawned 
five new parties; The PRI is 
still expected to win comfort- 


Foreign Debt 


60 ' 

Private Debt B % . 


Oil Exports 


f Public Debt f 


T9 TO 71 



inflation 



Population 



ably because of its deep roots, 
but. some of the opposition 
parties could make significant 
inroads. 

International bankers, who 
for the past three years have 
been optimistic about Mexico, 
are no longer so sanguine about 
Its prospects. Spreads on loans 
to Mexico have started to go 
up significantly, and leading 
dealers In the Eurodollar float- 
ing rate note market recently 
puHed out of trading Mexican 
paper. . 

The chief worry of the inter- 
national financial community — 
and many local observers— is 
that this is a famed uck adminis- 
tration which is tn danger of 
losing control. Mexican presi- 
dents are constitutionally limi- 
ted to one term of office, and 
two months after the devalua- 
tion. the Government’s stabfiisa- 
tion .policies, ‘including a $5.Sbn 
cut in public spending, are 
doing little to raise public con- 
fidence. Some of those measures 
which have been announced — 
like the granting of an extra 
tax free wage increase of be- 
tween 10 and 30 per cent over 
and above the 34 per cent statu- 
tory rise granted in January — 
appear to be motivated more by 
political considerations than 
serious economic thinking. 

The extra wage increase has 
already caused prices to soar 
and the beneficial effects of the 
devaluation on Mexico's sag- 
ging non-oil exports are being 
quickly eaten away. The peso 
■is now being allowed to de- 
preciate further. 


Meanwhile interest rates are 
increasing in an attempt to 
tempt funds out of dollars and 
into pesos (there is free con- 
vertibility of foreign exchange 
in Mexico) and to encourage 
the repatriation of the estimated 
S5bn which “ left ” the country 
before the devaluation. 

Company and bank profits, 
admittedly very high in Mexico, 
will be squeezed this year and 
some small companies could go 
under because of the burden of 
high interest rates— an effective 
rate of about 46 per cent at the 
moment — and the extra pay 
rise. 

AH of this has created a 
severe political dilemma for 
the Government Senior officials 
believe it would be politically 
and economically explosive to 
put the country into reverse 
gear for a time after four years 
in top gear, even though the 
circumstances dictate a period 
of austerity. 

“Can you imagine the kind 
of border problems we would 
have with the U.S. if both our 
economies went into recession." 
said one frightened official. 
Several million Mexicans 9* 
already working illegally in the 
U.S. and Washington is trying 
to staunch the flow of illegal 
aliens. ' • ’• 

President Lopez Portillo has 
already publicly Implied that 
inflation is the price Mexico 
may have to PSv in order to 
keep the country’s social pres- 
sures under control; 1 

Some 700,000-800.000 new jobs 
have to be created every year 


just to soak up the new entrants 
on to the labour market because 
of the explosive population 
growth rate of 3 per cent. And 
Mexico has created an astonish- 
ing 2.8m new Jobs in the post 
four years with an average 
growth rate of 8 per cent. 

But the Government's critics 
contend that growth and employ- 
ment will be higher in the long 
run if the present lackadaisical 
approach to.prices is abandoned. 
They point to the undeniable 
achievements of the Mexican 
economy during 1956-73, the 
period of “development with 
stability”, when real growth 
averaged 6.6 percent, with little 
oil backing, and inflation was in 
single figures. 

Inflation can probably fairly 
be called the endemic disease 
of South America and Mexico 
is beginning to catch it. As else- 
where there is no doubt that a 
large part of the inflation prob- 
lem lies with the Government's 
inability to control public 
spending. Last year’s total 
public sector deficit (federal 
government and public com- 
panies) was 735bn pesos 
($27bn) or a striking 12.5 per 
cent of Gross Domestic Product 
— double the target. 

The very relaxed attitude 
towards public spending has 
been encouraged- by the oil 
wealth. The external borrowing 
requirement has simply been 
expanded with oil as seductive 
collateral, or new pesos have 
been printed. 

The Government set out to 
borrow $5bh net last year and 


Marion Sedger 

ended up with $l5bn although 
admittedly some of this extra 
amount was needed to make up 
the dramatic s'eortfall in oil 
revenue. 

The Government -claims that 
budget restrictions are now- 
much more tightly enforced. 
But the 3 pec cent cut in public 
spending announced right after 
the devaluation and the further 
5 per cent reduction made this 
month do not in practice 
amount' to a -v'eiy sevferc tighten- 
ing of the belt. 

Even with these cuts thi* 
year's public sector deficit will 
be at least 9.5 per cent of GDP 
— a 3 per cent drop from last 
year, but still very high. The 
net foreign borrowing require-, 
ment of fillbn remains 
unchanged since it is still 
needed to cover the budget 
deficit which is unofficially 
estimated at a minimum of 
405bn pesos. 

The Government’s revenue 
has been severely hit by the 
sacrifices it has had to make in 
order to meet the! extra wage 
increases and . stagnant oil 
revenues. 

Furthermore, both the 
Government . and the private 
sector will be strapped for cash 
to meet their debt service pay- 
ments as the devaluation has 
greatly pushed up the cost of 
servicing the external debt, 
interest payments alone on the 
total foreign debt last year 
were 39bn or 234bn pesos at the 
old exchange rate. Even assum- 
ing an average exchange rate 
this year of 45 pesos and a debt 


at the same level, which is not I 
the case, interest costs will be , 
403bn pesos 

It is quite feasible that this I 
year the estimated SISbn of oil 1 
revenue will be almost entirely I 
swallowed up by meeting the 
interest and principal payments 
-on the public sector debt of 
almost $60bn by she end of the 
year. 

Apart from the inflationary , 
wage increase, which will make 1 
budgetary restraint more diffi- 1 
cull, the Government also has 
to contend with a very power- ; 
ful private sector which has 1 
often succeeded in making a 
mockery of price controls. ! 

After the devaluation, these 
were tightened on 5,000 items , 
by limit mg increases to 10 per 
cent until mid May. In the 
first month, up until the extra 
wage increase, over 3.000 com- 
mercial establishments, among 
them major department stores, 
were closed temporarilily for 
breaking the controls in a show 
of Government strength. When 
the increase was announced, 
the Government relaxed some 
controls to appease business- 
men. 

In an uncanny way history is 
now repeating itself. Sr Lopez 
Portillo is leaving his designated 
successor. Sr Miguel De La 
Madrid, the former Planning 
and Budget Minister and the 
PRI's presidential candidate, 
very- similar problems to those 
which he inherited in 1976 after 
an abrupt devaluation of 40 per 
cenL 

But (he situation is worse 
now. despite the fact that 
Mexico’s oil wealth has grown 
enormously. One major reason 
is that unlike 1976. when there 
was no oil glut. Mexico cannot 
pump its way out of its crisis 
by increasing its oil exports. 
Pemex. the State oil concern, 
is having renewed difficulty in 
selling its output and will be 
lucky to earn this year the 
$I3.3bn received in oil receipts 
in 1981. 

Secondly. Mexico’s key econo- 
mic indicators — inflation, the 
foreign debt and the current 
account deficit, which will now 
be between §8bn and SlObn this 
year after last year’s record 
$1 1.7bn, are proportionately 
worse. 

Not surprisingly Sr De La 
Madrid is using his campaign 
to start to dampen down 
expectations. His will have to 
be a much more austere presi- 
dency. 


Perks— now the 
golden parachute 

By Richard Lambert in New York 


UK EXECUTIVES are under- 
paid, overperked and mainly 
concerned with job protection. 
Their U.S. counterparts, by 
contrast, are paid in hard 
dollars rather than soft ex- 
pense accounts — and they are 
judged much more by. their 
performance. If they do well, 
their paychecks are substantial. 
If they fail, they are fired. 

That, at least, is the popular 
image of business in the U.S. 
— of a much snore dynamic 
form of capitalism than is 
practised in Europe, which 
rewards risk takers if they 
succeed, and dumps them if 
they fail. The reality is Tatber 
different. 

The proxy statements, which 
are now flooding out ahead of 
the season for shareholder 
meetings in America, show that 
some U.S. company directors 
are happy to make arrange- 
ments for themselves that 
might even have raised an eye- 
brow in the old Associated 
Communications’ boardroom. 
Job protection, in particular, 
has been turned into a fine art. 
One innovation has become so 
widespread that it has already 
earned itself a nacknatne: after 
the Golden Handshake, make 
wav for the Golden Parachute. 

This is a cozy arrangement 
whereby directors who feci 
threatened by a hostile takeover 
arrange contracts which will 
give them a multiple of their 
salary if they should lose their 
jobs when a predator walks in. 
Independent oil companies like 
Conoco. Phillips and Superior 
showed the way during the 
recent wave of energy-related 
takeovers. And executives in 
such disparate groups as Kaiser 
Cement, United Technologies 
and Control Data have fallowed 
suit. 

Jn some cases, the potential 
severance payments arc sn Iargt 
that they could actually scare 
bidders away. Executives in 
Gulf Resources, for instance, 
stand to take away up to $13m 
if they lose their job after a 
takeover. This is more than the 
company made from its con- 
tinuing operations last year. 

Some golden parachutes will 
open even if you are not booted 
out of the plane. Before it was 
acquired by Du Pont, Conoco 
agreed that if someone bought 
more, than 20 per cent of its 
shares, its chairman would be 
able tD quit if be felt that as 
a result he could not discharge 
his duties — and take away a 
large lump sum by way of con- 


solation. Superior Oil allows its 
protected executives to leave 
for any reason other than death, 
disability, wilful misconduct or 
normal retirement — and still 
collect their compensation. 

The argument for this is pre- 
sumably that it is no fun to be 
paid a large salary by your new 
boss — and then be laid to prune 
the roses. 

Takeovers apart. There are lots 
of Other intriguing features in 
this year’s proxy statements. 
Straightforward sen-ice con- 
tracts ore commonplace. Tlu,* 
chairman of American Broad- 
casting Companies, who is 76. is 
covered Through to 19S6 — tie 
also has a modified form of 
parachute in case he has to 
make a new start. 

Then there is Allegheny 
International, which is lending 
executives money at 2 per cem. 
mainly— though by no means 
exclusively — to buy shares in 
the tampans’. Fisher Foods has 
a bright idea: it wants to 
give executives interest free 
advances on their salaries. 

W. R. Grace has gone a step 
further. Anxious to show their 
appreciation for chairman Mr 
Peter Grace, who has run the 
company on a Tight rein for 
many years, the directors last 
summer voted him a Sim bonus. 
In cash. 

One comfort is that many U.S. 
companies have formal systems 
of control, whereby executives’ 
remuneration is supervised by 
independent non - executive 
directors. But independence is 
a matter of degree. The outside 
directors of AMAX. which last 
year turned down, a takever bid 
from Socal worth roughly twice 
the current market price, 
receive fees for consultancy and 
other services amounting to 
several hundred thousand 
dollars a year. Does this make 
them completely dispassionate 
observers of the company's 
affairs? 

Fringe benefits are not just 
confined to the boards of large 
public companies. Indeed. too 
scope is even greater in private 
companies — for instance, to pro- 
vide extensive insurance cover, 
company cars, or club member- 
ships. It is not a coincidence 
that so many business conven- 
tions are held at holiday resorts. 

One way or another, it looks 
as though the perk is yet 
another example of a British 
invention that has been taken 
over and exploited by the 
Americans. 


^5 m 




- I 


& ■ ■ » V; 

• i* “ A 




gpr*.'-* .**■ 


■- 


if . 


Letters to the Editor 

The question of voting shares in ITV companies a fnture for * e 


From, the Deputy Director, 
General, Independent 
Broadcasting Authority 

Sir. — Mr Kennard in his letter 
(April 20) about ITV company 
shares raises important matters. 

We have to recognise that 
there are two aims, eat* good 
in itself, which are in apparent 
conflict; one is the authority’s 
duty to supervise the control 
of programme companies, while 
the other is the desirability of 
those who invest in companies 
being able to have their due 
say in the way they are run. 

The present structures of 
most TV companies stem from 
the. desire of the original 
investors to secure marketa- 
bility, via a Stock Exchange 
listing, for their -shares. Recon- 
ciling this desire with the terms 
of the programme contracts 
(based, on statutory provisions) 
for the authority to control 'the; 
ownership of the voting shares 
has led to a relatively low pro- 
portion of voting to non-voting 

Directors’ equity 
interests 

From tin Managing Director 
Tungnm Hydraulics 

Sir, — I feel compelled tp com- 
ment on Mr Hood’s one-sided 
view of directors' share 
interests \ April 22). 

His suggestion, that the direc- 
tion of business operations 
should only be allowed to per- 
sons with substantial equity 
participation is totally indica- 
tive of the negative t hinki n g 
which will prevent this country 
once more becoming a sub- 
stantial force not only in inter- 
national markets but sadly also 
in our own. 

Surely the answer is to en- 
courage capable and profes- 
sional management ti> .attain 
positions of . responsibility 
leaving those with capital free 
to invest in organisations which 
have Ibe best potential for Aieir 
risk. To assume that equity 
availability always equates to 
management skills is surely 
nonsense. 

G,-W. Burndred, 

The White House, Arle, 
Cheltenham, Gloucestershire. 

Still flying high. 

From the Manager, UK and 
Ireland, Qantas Atncays 

Sir. — I refer to the articles 
•• Flying High” 'and “Shot 
Down " in “ Men and Matters " 
(April 21). You may be 
interested to know that Qantas 
Airways became the first airline 
outside the U.S. to take delivery 
of and operate an American 
commercial jet. The first Qantas 
707 arrived in Australia in July. 
1959, and on iis delivery flight 
Ik* came the first cominerdal jet 
to land, in Honolulu. 


shares in most cases. 

In the recent ACC case, the 
takeover bid was not in strict- 
ness -for the TV programme 
company but for the bolding 
Company, ACC, which had a 51 
per cent interest In Central 
Independent Television, the 
programme company for the 
East and West Midlands. The 
authority’s power over the 
ownership of voting shares 
extended, however, both to 
those of ACC and to Those of 
Central. The authority decided 
subject to -stated conditions 
that it would not withhold its 
approval to the proposed 
acquisition of ACC by com- 
panies in which Mr Holmes k 
Court was Interested. At the 
same time, its power in relation 
to the ACC voting shares 
. enabled it ■- to . make strict 
requirements .to secure that 
Central, “the newly appointed 
TV company, did not fail trader 
overseas-control (which, would 
disqualify it under the Broad- 

The first commercial - jet 
service between the UB. and 
Australia was commenced by 
Qantas in July; .1959. 

. In 1959 BOAC commenced 
jet operations '.' along the 
Kangaroo Route with Comet 4 
aircraft between London and 
Sydney, and Qantas introduced 
707s -on this route at about the 
same time. 

R. Jeppesen. 

500 Cltiswick High Road, W4. 

The common fond for 


commodities 


From the Executive Chairman, 

International Tin Council. 

Sir,— Brij Kbindaria’s article 
“ New. disputes threaten UN 
common fund” (April 21) 
leaves the reader, with the 
wrong impression of the rela- 
tionship between, the proposed 
co mm on fund for commodities 
(and the preparations far it to 
come into operation) and the 
international commodity organ- 
isation (ICOV - 

While acknowledging that 
only 22 countries have ratified 
the ‘ conunon- fundi agreement 
compared with the 90 countries 
needed to bring the- fond Into' 
operation, Khindarii gives the 
impression that the delay in the 
fund coming into operation Is 
because of disagreements with 

ICO. - 

This is certainly not true as 
far as tin is .concerned. Nor is 
it true, I believe, in relation to 
the ' other commodities 'men- 
tioned. One could hardly des- 
cribe the fact that quite exten- 
sive discussions have been held 
wfth the UNCTAD secretariat 
»wi relevant documentation 
which has been prepared for 
the common Fund preparatory 


casting Act. 1981, from con- 
tinuing as a programme con- 
tractor). The same power 
would have enabled the autho- 
rity. in the case of other 
bidders, to avoid a situation 
where control of the programme 
company passed into the hands 
of companies in whose selection 
as major participants in a pro- 
gramme company the authority 
bad played no part 

The authority’s exercise of 
its powers in the ACC case has 
not therefore, been nugatory, 
as Mr Kennard seems to suggest. 

Mr Kennard refers to the 
TSW arrangement This is 
interesting and novel. The 
authority is continuing to give 
its attention to ways of 
enabling programme companies 
to have a more flexible capital 
voting structure without at the 
same time endangering its 
ability to exercise a proper 
control over their composition. 
Anthony PragnedJ. 

70, Brampton Road, SIV3. 

commission or that a senior rep- 
resentative of the Tin Council 
secretariat attended the session 
of the preparatory commission 
mentioned, as an unwillingness 
to co-operate. The fact that 
modifications to the UNCTAD 
secretariat’s suggestions were 
proposed to take account of the 
peculiarities of each of the ICOs 
and the special characteristics 
and operating practices of the 
markets involved for different 
commodities, is a sign of a 
desire to cooperate rather than 
the reverse. 

It is also misleading to state, 
as Khindaria does,- that the 
fund was conceived as a policy 
maker superior to the ICO. 
Such an Idea has ho basis in 
the conunon fund - agreement. 
Nor does the notion that the 
fund would act as an arbitrator 
between conflicting demands 
(presumably of different ICOs) 
with authority to enforce its 
decision. The common fund 
agreement 'specifically provides 
that in the relationship between 
the fund and an ICO each insti- 
tion shall respect the autonomy 
of the other. 

Pursuant to. Article 25 of' the 
sixth International Tin Agree- 
ment' when the common fund 
becomes operational the Tin 
Council ; will be required to 
negotiate with the fund for 
mutually acceptable terms and 
modalities for an ' association 
agreement with the common 
fund. In the meantime the 
secretariat of the Tin Council 
stands ready to -continue the 
co-operation already started 
with those who are working on 
’the preparatory work for the 
common fund. 

P. S. Lai. 

1 Oxendon Street, SW1. 


islanders j 

Sir,— The world has rightly; 
condemned the Argentine 
invasion of the Falklands but j 
it has not expressed a view on 
British sovereignty and indeed 
the British claim might not be 
upheld bv many. 

With the Argentine already 
providing so many services and 
communication facilities to the 
islands, it makes sound 
economic sense for toe islanders 
that these ties should be 
strengthened. Britain is neither 
able nor willing to improve 
their economic circumstances 
and in my opinion would tike 
to give up its responsibilities 
there, though not its foothold 
to the mineral and resource 
opportunities in the Antarctic 
region. 

My solution to the crisis is 
that simultaneously the 
Argentine acknowledges British 
sovereignty to Georgia and the 
Falkland island depend an tries; 
Britain acknowledges Argentine 
sovereignty to the Falklands 
themselves; the Falklands are 
exclusively administered by ; 
Britain for five years, jointly 1 
with the Argentine fora further I 
five years and thereafter by the 1 
Argentme with guarantees 1 
which would protect • the 
islanders’ way of life for- toe 
following 20 years; and ail 
combat forces withdraw from 
the area. 

James Denholm, 

36 Pickwick Road, SE21. ■ 

From Mr G. Hen wood 

Sir, — Although one has every 
sympathy for the islanders in 
their present plight, from toe 
British taxpayers’- point of viev? 
the issues are far more complex. 
Because of the activities of the 
Falklands and Antarctic Survey 
during the past 80 or so years 
which to date must have cost ns 
in total several hundreds of 
millions of pounds, we now have 
extensive knowledge of toe 
region, all embodied in a. mass 
of freely available technical re- 
ports which, in view of our 
North Sea experience, are, I 
hope, familiar reading to BNOC, 
Peter Walker of BP and other 
interested parties. 

I am sure toe reports have 
been carefully studied by the 
Argentines. Unhappily I doubt 
if they are as familiar to onr 
Foreign Office chaps and even 
more doubtful of the F.O.’s 
ability to appreciate their tech- 
nical and economic significance 
for Britain’s future when NS oil 
peters out The vital point being 
that toe Falkland Islands and 
South Georgia will be key ele- 
ments in the inevitable future 
exploitation of toe southern 
area resources. 

G. A. Hen wood. 

Orchard Cottage, 

The Square, 

BriflhtureiL 
Wallingford, Oxon. 


ONE SET OF FIGURES 
EVERY PENSION FUND 


It’s the telephone number of Barclays Investment Management 
limited, a wholly-owned subsidiary of Barclays Bank Trust Company. 

We specialise in providing full investment management services 
to institutional and corporate clients and we are one of the leading 
investment houses in Britain. Funds under management exceed £2,000 
milli on of which £1,400 million consists of the investment portfolios 
we manage on behalf of company pension funds. 

As you would expect from the size of these figures and from 
pur Barclays Group pedigree, Barclays Investment Management 
Limited possesses the skDls and resources needed to manage your 
company’s pension fund-and to do it very well- whether yours is still 
a medium-sized company or a multi-national corporation. 

If-you would like to know more, the man to talk to is 
Bill'Hilling, Director and Investment Manager; Barclays Investment 
Management Limitedjuxon House, 93 St. Paul’s Churchyard, 
London EC4M8EH. 

Ask him about the kind of performance his fund managers have 
achieved over the past five years, the quality and extent of the service 
-pension fund clients can expeetto receive and the comprehensive 
administrative back-up that can be included in the package if required. 

We think you’ll be impressed with his answers. 


BARCLAYS 





20 


Companies and Markets 


UK COMPANY NEWS 


Finandal Times Tuesday' April 2 ? I 9 $&. + 


Simon Engineering expands to £20m 


PRE-TAX . PROFITS of Simon 
Endneeriog improved from 
£19.31 fn to a peak £20.33m for 
maintaining the group’s 
record of unbroken profit growth 
since 1972. 

However, after tax of £5.14m 
(£5.92m) minorities of £l.2Sra 
f£l.26m) and an extraordinary 
debit this time of £560.000, 
against a credit or £7.47m, profits 
at .the attributable level emerged 
welt down at £13. 3 5m, compared 
with £I9.6lm. 

Earnings per share are given 
as 33.6p (4S.4p) before extra- 
ordinary items and as 51 .5p 
l78.4p) after. An increased final 
dividend of S.6p (Sp i raises the 
pet total by O.fip to 12.6p per 23p 
share. 

Full-year turnover of the 
group, whose interests take in 
specialised machinery, process 
plant contracting, merchaming 
and storage and oil services, 
advanced from £324.I4m to 
£339. 77m. 

; The pre-tax figure included a 
share of profits nf associates of 
£l-14m (£1.02m) and interest re- 
ceivable less payable of £3.72m 
(£3.95mi. (( was also after 

higher depreciation of £5.77m 
(£4.74m). 

The principal extraordinary 


item was a provision of £567.000, 
after lax relief, in respect of 
costs arising on the cessation of 
certain activities. 

At’ six months pre-tax profits 
were £7.44m (£7.62m adjusted). 

Commenting on Lhe full re- 
sults Hr Harry Hamson. the 
chairman, says much of the 
group's success was due to a long- 
term policy of increasing its in- 
ternational spread of business 
which has resulted in a growing 
contribution from these overseas 
activities. 

The UK companies improved 
efficiency and reduced lhe com- 
petitive gap against overseas 
competitors, pursuing aggressive 
world-unde marketing policies 
ami obtaining higher shares of 
limited international oppor- 
tunities. 

The group plans to continue 
its growl h strategy by giving 
priority to investment in new 
processes and products. 

The chairman hopes that the 
much-forecast upturn in the UK 
and world economies will soon 
he seen. However, when rt 
arrives, he says, there is' likely 
to be a time iag before it could 
be translated into an increased 
demand for capital goods and 
therefore 1982 will probably 


Recovery 
at Clive 


Travis & Arnold £1.2m 


HIGHLIGHTS 


Lex explores the implications of Hong Kong Land's latest 
piece of acquisition strategy — the purchase of the colony's 
monopoly supplier of electricity. Ford UK has reported 1981 
profits of £220m while the balance sheet feature is a Slbn 
loan to the parent company. The column then goes on to 
comment on the latest figures from Simon Engineering which 
show a solid enough performance. Clive Discount has turned 
around from a first-half loss to a profit in the closing six 
months and shareholders receive a 1.6p dividend. Finally Lex 
looks at the latest institutional investment figures. On the 
inside pages Brook Street Bureau has slid into the red with 
a £ 1.53m lass. 


Discount downturn at year end 

IATCF.HOLDERS OF Clive 


cnniinue lo he difficult for many 
group companies. 

Nonetheless. “ the group will 
continue to make efforts to Im- 
prove its market and profit per- 
formance.” 

A breakdown of turnover and 
trading profit (£ 15.46m, against 
£14.34ml for the year shows: 
food engineering £68.1 lm 
t£67.36m) and £1.95m (£2.95m); 
manufacturing £51.01m (£49.6m) 
and £3.34 m < £1.9Smj ; process 
plant contracting £1 12.33m 
(£lOS.9Sm) and £3J35m (£3.2m>; 
merehanlina and storage £S7.2Sm 
(£86.01ra) and £3.76ni (£6mj; oil 


services £21.04m (£12.21m) and 
£2.04m (£1.14m). Central - ex- 
penses totalled £979,000 
(£937 .000 f. 

Current cost pre-tax profits 
were marginally lower • at 
£14.29m t £14.5 in). Earnings per 
share were 32 .2 p (3Q.3p) before 
extraordinary items and 30.1p 
(60-2p) after. 

At year-end shareholders' 
funds stood at £S$.9m (£73 .5m), 
Fixed assets were up from £51.9m 
to £60.3m with cash and deposits, 
less overdrafts. at £43.4in 
(£47.1nw. 

See Lex 


Improvement j & j Hyman deficit at £0.35m 


SHAREHOLDERS OF Clive 
Discount Holdings are to receive 
an Increase in their dividend for 
the year ended March 31 1983. 
The directors are recommending 
a one and only payment of L6p 
net per share, after they omitted 
the interim. Tn the previous year 
there was a total of 1.5p. includ- 
ing- an interim of 0.5p. 

Disclosed profits for the year 
are shown ahead from £1.03m to 
fl.lHm. These are stated after 
allowing for rebate, taxation and 
transfer tn contingencies reserve. 
Nn account has been taken of the 
profit arising from the sale on 
April 1 last of half the group’s 
holding in International Discount 
Company of Singapore. 

At the halfway mark the group 
reported an overall loss after 
allowing for unrealised deprecia- 
tion on assets held at September 
3fl 19S1 and for redundancy pay- 
ments in respect of tbe closure 
nf Clive Investments. 

At the year-end shareholders' 
funds had increased by £695.000 
to £8.72m. 

Reserves have been 
strengthened significantly, pro- 
viding a stronger base for opera- 
tions in the current year, the 
directors state. 

See Lex 


seen at 
Utd. Ceramic 

Exceptional Arctic conditions 
in January resulted in depres- 
&Cd salps al United Ceramic 
Distributors, hiu lu mover has 
now improved and is reaching 
tbe levels experienced in the 
early pari of 1991. says Mr P. S. 
Baltin, the chairman, in his 
annual statement. 

The general market place for 
the company's products is slili 
depressed, however, hui the 
current level nf turnover has 
been achieved by obtaining a 
larger share of lhe existing 
market. Any upturn in economic 
activity in the country should he 
reflected quickly in the com- 
pany's performance, he says. 

The prnfi. sharing scheme 
which was referred in in the 
company's prospectus last year 
is now well advanced in prepara- 
tion, and proposals should be 
ready in place before share- 
holders later this year. 

As known, the company's pre- 
tax profits fell from £524,357 In 
£19.639. Al the yearend, share- 
holders' funds Fiord al £96S,S15 
t£lm>. Net current assets 
amounted to £665,576 (£842.525). 
Cash and hank balances 
improved from £343 in £46.834. 
The decrease in liquid Funds 
during the year was £114,954 
(£66270). Meeting: Stourbridge. 
May 21. at none. 


PRE-TAX LOSSES of £346,000 
for 1981. against profits of 
£521.000 previously, are reported 
by I. and J. Hyman, plastic foam 
converter and manufacturer. 
Turnover rose from £19.4Sm to 
£20. 74 m. 

There is a nominal final divi- 
dend of O.lp net, the interim 
having been omitted — last year's 
total was O.S2?2p. including a 
0.4 ISflp final. 

The directors say UK profits 
were minimal, as the company 
suffered severely in the final 
quarter, largely due to increases 
of more than 35 per cent m the 
cost of prime raw materials 
which could not be recovered. 

There were also substantial 
bad debts arising from the con- 
tinuing recession in the furniture 
industry. 

However, they add, the situa- 
tion has improved following 
better price levels for some 
products. 

Overseas operations moved 
much more slowly than expected 
because of the recession hut pro- 
gress was maintained apart from 
the Canadian retail outlets. 

Midterm profits before tax 
were down from £642.434 lo 
£1«U0I. 

There was a lax credit of 
£13.000 for the year, against a 
£108.000 charge, and an extra- 
ordinary debit or £112.000 
(£34,000 credit). This represents 
reorganisation costs on reduc- 
tion, closure or transfer of 
operations and overseas com- 
panies' goodwill written off. 

Losses per 5p share are shown 
as 0.81 p. compared with earnings 


of 2.3 Ip, before extraordinary 
items. 

On a current, cost basis, pre- 
tax losses totalled £610,000 
( £69,000 profits). 

• comment 

Hyman has heen knocked side- 
ways by a disastrous final quarter 
hath at home and overseas with 
second half losses jumping tn 
over £500.000 after interim profits 
of £tfi(i.000. In the UK its manu- 
facturing plants, supplying ihe 
furniture and automotive 
industries in lhe main, wore 
caught nut hy a 35 per cent price 
rise from October for ils main 
raw malrn.il. That wined out 
profit, margins. Overseas Its 
diversification into Canadian 
fabric retailing, bedding etc.. 


equally came unstuck in the final 
three months. Whereas Hyman 
was looking for sales of SI. 2m in 
the last quarter it only achieved 
ssno.non o r so. Looking forward 
an easing in chemical costs plus 
a round of price increases to its 
customers has taken some of tbe 
pressure off trading margins 
from January. There is some 
intriguing talk shout two more 
diversification moves but details, 
as yet. are thin. Meantime bor- 
rowing* are up lo arming £3m 
which j* probably getting close to 
a capital gearing ratio oF one to 
one stripping out goodwill. The 
full arcounts will paint a belter 
picture. Meantime the price of 
Sip gives a market capitalisation 
of just £l.Sm. The yield is a 
nominal 1.7 per cent. 


Progress at 

Scottish 

Northern 


BOARD MEETINGS 


1T»9 l ottoivn? LOmpunga nave nonhfrl 
date* of board meennqs |>i the Slock 
Exchange. Such meetings an usually 
held for Hie puroose of considering 
dividends. DHicial indication «i are not 
available as to whsther dividends are 
interims or finals and di* subdivisions 
shown below are bassd mainly on Iasi 
y oar’s timetable. 

TODAY 

Interims: Border and Southern Stock- 
holders Trust, Ncilli BiiUsb Properties, 
Safeguard Industrial Investments. 

Finals: Astburv and Madelry. English 
National Investment. Famell Etcctronics. 
John Laing. Lake View .Invesamnnt 
Trust. London United Investments. 
Marlborough Property. NewarfhiK. 
Parambe. Silenimghl. John C. Smati 
and Tidmas. Tarmac, Tern-Consiilata. 


Toys, Torar Krmstoy and Millboum. 
TiirnK. Wadkin. 

FUTURE DATES 
interims— 

Noirh Midland Construction . . Mr/ 13 

Royal Bank of Scotland . ... May 6 

Finals— 

Belouva fBlackhaath) Am 30 

B'emner Aor 30 

Brown Boven Kent Adi -30 

C«ntitf and Sheecwood Am 38 

Everad Apr 23 

Fofsco Mmsep May * 

Gems Gross May Id 

Northern Goldsmiths May 7 

Savoy Hotel . . tAor 3? 

TR Natural Resouicas tnv Tst. May 20 

T co-tal ; May 4 


Kleinwort Benson 

Continued Progress 


A summary of the Statement by Mr . Robert Henderson , 
Chairman of the parent company , 
KLEINWORT, BENSON, LONSDALE pic, 
in the Report and Accounts for 1981. 


PROFIT 

Profit after tax and transfers to inner 
reserves totalled £2 1.71ml (1980 — £22.911111). 
Although Sharps Pixley’s contribution was 
well below the 19S0 record figures, profits 
from that source still exceeded those 
attained in any previous year. Total 
dividend is iop per share (1980 - 9p). 

While demand for credit was surprisingly 
high, competition remained fierce and the 
earnings from acceptances were reduced. 
However, our ability to offer sterling facilities 
to international customers has led to a welcome 
inflow of business, and our sterling and foreign 
exchange operations have increased both in 
scope and profitability. 

EXPORT CREDIT 
One benefit of being a bank of our size is the 
ability to underwrite and sjudicate finance for 
large contracts, both in sterling and dollars, and 
our Export Credit finance services have been 
widely marketed. 

CORPORATE FINANCE 
We had an outstanding year. The issues for 
British Aerospace and Cable and Wireless were 
successively the largest company flotations ever 
made in the U.K. On the international side, we 
had by far our most active year. 


INVESTMENT 

Our international investment management 
business has continued to prosper, and has 
countered competition both by good 
performance and by keeping the increase in costs 
lower than the increase in income derived from 
greater volume, with the world-wide support of 
investment teams in our overseas offices. 

Trustee and financial planning services have 
also shown international growth. 

OVERSEAS 

Our European subsidiaries in Bremen, Brussels 
and Geneva achieved satisfactory results, and 
Kleinwort Benson Australia - jointly owned 
with The Colonial Mutual Life Assurance 
Society - made an encouraging start with a 
profit for the initial eight months. Our Hong 
Kong branch and its satellite finance company 
more than doubled their 19S0 profits, offering a 
full range of international merchant banking 
services. Our banking and corporate finance 
business in North America, through offices in 
New York and Chicago - and, now, Los 
Angeles - has expanded. 

PRODUCTIVITY 

Increasing productivity is helping to 
combat intensifying competition. Our 
balances of £3,6pomn are still handled by 
office and accounting staff no larger than 
handled our balance sheet of only £2501x01 
twelve years ago. 


Pre-tax revenue of Scottish 
Northern Investment Trust 
improved from £2.S2m to £3.0lm 
iri the year tn March 31 1982. 
After lax up from £956,983 to 
£].n7m. net revenue rose from 
£1.86m to £1.93m and stated 
earnings per 25p share were 3.6p 
azainst 3 46p. The final dividend 
is raised from 23p to 2.3Sp for 
an improved total of 3.58p 
azainst 3.45p. 

Nel asset value per share felt 
from 140.1 2p to 124.58p, and 
total assets. less current 
liabilities, totalled E73.S7m com- 
pared with £81.43m. 

Profits lower 
at Wire 
& Plastic 

A SETBACK in pre-tax profits 
was shown at Wire and Plastic 
Products for 19S1. The surplus 
fell from £379.099 to £313,302 on 
lower turnover of £2.37m against 
£2.5 lm. 

In the second half taxable 
profits were lower at £142£91, 
compared with £203,778. The 
final dividend has been held at 
1.22p which raises the total from 
1.95 71 lo 2.07p, 

After tax • of £108,163 
( £140,258) and an extraordinary 
credit last time of £33.238 earn- 
ings per lOp share fell slightly 
from 6.84p to 5.87 p. 

Mr J. Valentine is resigning as 
chairman upon reaching 70. His 
place will be taken by Mr J. R. 
Symonds. 

On a current mat basis pre-tax 
profits were £317,700. 

Murray Northn. 
deb. repayment 

Murray Northern Investment 
j Trust is repaying the £600,000 
4 per cent debenture stock 
1964/54 at £101 per cent on July 
27. 

Tbe directors took tbe decision 
to make repayment in advance 
of the due date of December 1 
1984, in order to relieve a limita- 
tion on borrowings whidx is 
unduly restrictive in terras of tbe 
1 present 6ize of the company’s 
assets. 

BLACKWOOD 
HODGE CANADA 

Find quarter pre-tax losses of 
Rlackwood Hodge (Canada! are 
down by C.S1.03m to ?1.75ra in 
1982. on turnover slightly behind 
at 923.93m. against 824.95m. 

After a tax credit of S880.000 
(91.38m » loss per share is shown 
as 35 cents (57 cents). 

The company is 74 per cent 
owned by Blackwood Hodge of 
the UK. 

CONSOLIDATED 

MICROGRAPHICS 

Consolidated Micrographics 
(UK) has nn longer any connec- 
tion with AM International. 

SPAIN 

Price 

April 23 %> +or-- 

Banco BiH?ac 348 

Barren Central 341 

Banco E*wnor 305 

Banrn Htscano 314 

Banco Ind Cat HO 

Banco Santander 330 

Banco Urawjo 202 

Banco Vizcaya 383 

Banco Zaragoza 346 

fjragado*; _ 154 

Espanola Zinc B8 +2 

Fccea 62.5 

Gel. Preciados 38.5 

Hidrort* 63.2 4-0.2 

Ihwd'isra 56 -0.5 

Petroieos 90.2 +0.2 

PetruW»f 99 

Sogelm 7.5 

Telefonica 70 

Un*on Beet. 63.7 -0.3 


King&Shaxson 

PLC 

52 ComhllL ECS 3PD 
Gilt-Edged Portfolio Management 
Service Index 26.4 62 
Portfolio I Income Offer 75.94 
Bid 7556 

Portfolio If Capital Offer 170.24 
Bid 169.27 


20 Fenchurch Street, London EC3P sdb 

Represented in BIRMINGHAM. MANCHESTER, NEWBURYand EDINBURGH 
and in BAHRAIN • BANGKOK * BOGOTA - BREMEN - BRUSSELS ■ BUENOS AIRES • CHICAGO • GENEVA • GOTHENBURG 
GUERNSEY • HAMBURG * HONG KONG • ISLE OF MAN - JAKARTA - JERSEY - KUALA LUMPUR - LOS ANGELES * MADRID 
MELBOURNE • MEXICO CITY • NEW YORK • PARIS - RIO DE JANEIRO • SANTIAGO DE CHILE • SINGAPORE* SYDNEY -TOKYO 


. THE TRING HALL 
USM INDEX 

119.7 (+0.5) 

Close of business 26/4/82 
BASE DATE 10/11/80 100 
Tel: 01-638 15S1 


LADBROKE INDEX 

Close 566-571 ( + 1) 


ALTHOUGH second-half pre-tax 
profits of Travis and Arnold 
were much higher than those of 
the first, this builders' and 
plumbers* merchant and timber 
importer finished the 1981 year 
down by £l-22m at £5 .3 7m pre- 
tax. Turnover also declined, from 
£97.R8m to £90.41m, for the full 
period. 

Tbe directors say, however, 
that despite difficulties because 
of last January's severe weather, 
sales and trading profits for the 
first quarter of 1982 are some- 
what ahead of the “.rather weak " 
figures for the corresponding 1 
period a year before. 

Tbe company feels that some 
limited Improvement in volume 

terms should be evident during 
tbe rest of this year. 

Affected" by the low level of 
construction activity, pre-tax 
profits in the first half fell from 
£3.i 2m to £2 .01m. 

Stated yearly earnings per 25p . 
share are 19.7p (39.7p) and the 

net dividend is increased to 4-33p 
r".94») with a final distribution 
of 3.69p. 

Trading profits, although 
better in tbe second half than 
f-b® first were still 31.6 per cent 
lower at £4.6m (£6.73mj, and 
reflected the sharp volume 
incline in construction activity 
over the year and the resulting 
increase in competitive selling, 
in the supply industry. 

The company's efforts to main- 
tain gross trading - margins in 
these conditions were successful 
at some cost to market share, 
directors state. 

Above the line, interest 
received amounted to £539,000 
(£221,000 paid), profit on invest- 
ments was £150.000 (nil), and 
there was a £63,000 (£84,000) 


DIVIDENDS ANNOUNCED 

Date Corre- ‘Total 
- . Current of’ spending for 


Current of 
payment payment 
,. 0.1 - July 80 


Corre- -Total 'Total 
sponding for 'last : 

div. year ymu: 
:l 844 ' 


Brook St Bureau 0.1 July 30 : 1 .244 

Clarke Nickolls 2.75 " — 2125 4.5; -4 

dement Clark 1.74 — 1.51 . 3.01 2.87 -- 

Clive Discount 1.6 . Juheie i.O 1$ ;iJ5 “ 

Gopeng Cons. ...lstint 4 July 5 4 ‘ — 17 

I. & J. Hyman 0.1 June 21 0.41 >04 0^3 ; 

Lowland inv. int 1 June 11 1.75- — iS5 

S. Lyles inL 258 Junel 2.0 — ' 1.648 -- 

Simon Engineering ...... S.6 Julyl § - 12.6 .12 

C. C. Sllngsby 0.6 . JulyS 15 U 3A 

Travis & Arnold ..: 3.60 — 3J *33 ^54 

VI king' Resources 0.4 -July 7 0.4 0,8 • 0.8 . 

Dividends shown pence per share net except where otherwise stated, 
•Equivalent after allowing for scrip issue, .ton' capital 
increased by rights and/or acquisition issues. J USM. Stock. j Ttj 
reduce disparity. ’ 


profit on the sales of properties. 

Tax charge was £1.99m (£2.4m) 
— there was also a transfer of 
£2.59m from deferred account 
last year— leaving a balance of 
£3.38m, compared with £6-79 m- 
After dividends the amount 
retained was £2-62ro (£6.09m). 

Shareholders' funds at the 
year-end were up at £37 -36m 
'‘"H.66m) and cash and short- 
term investments increased from 
£2.5ra ti £5.1m. 

On a CCA basis the taxable 
figure was reduced to £-L2m 
t £3.99m). 

• comment 

tt was a brave decision by 
Travis and Arnold to maintain 
gross margins last -year. Not 
surprisingly, as a declining con- 
struction market intensified com- 
petition, it lost several estab- 
lished contracts. Even so the 
group came through 1981 intact-. 


Two small .units were closed and 
the -.workforce was .trimmed by . 
only 10 per cent . For the -cur- 

rent year the company Ibopga to 
continue to hold- gross margins 
. and to contain overheads below 
Die. rate of inflation. Combined 
with the recent slight pick up 
ini demand this leaves . it not 
unreasonably hopefuT of "ah' up- 
turn in the current year, tn 
around 1980 pre-tax profit levels. 
The share price yesterday; rose 
lip lo l79p for a prospective p/ e 
of 9$. Meanwhile, . now with 
around £7m in the kitty the 
group plans expansion both by 
developing green field sites and 
further acquisitions . among the 
2,000 or so small operators in ff» 
market. But its key takeover 
targets are very independent 
minded and the - company 
-remains, therefore, reluctant to 
pursue them. 


Global Resources dissidents 
disclaim Cornfeld connection 


BEAR, STEARNS AND CO. the 
New York investment bank, 
moved yesterday to quell specula- 
tion over tbe weekend that Mr 
Bernie Cornfeld, the former head 
of International Overseas Securi- 
ties (LOS), is involved with the 
group of U.S. shareholders in 
Global Natural Resources who 
are seeking to replace the board 
at Global's next annual meeting. 

Tbe bank, which is advising the 
dissident shareholders' group, 
said tbe group M has had no direct 
or indirect contact " with Mr 
Comfeld. 

Global is a Jersey-based energy 
sector investment company. It 
was set up to take over certain 
oil and gas assets, then thought 
to be worthies, held within the 
IOS group. Its shares were 
distributed to TOS shareholders. 
Mr Frank Beatty, president of 
Global's board. i s himself a 
former employee of tbe IOS 
group. 

Th'.» dissident shareholders 
hr»V ".1 per cent of Global's 
c’tu i? They have indicated that 
thav intend to propose a replace- 
iii on. t'. K . entire existing board, 

ifin nominee directors 


include Mr Aten Greenberg, chief 
executive of Bear, Stearns; Mr 
Marvin Warner, a former U.S. 
ambassador and. Mr Marvin 
Watson, a former, director of 
Occidental Petroleum. 

The present board, advised by 
Hambros Bank, has rejected the 
nominees' assertion that t hey 
will manage Globa] to better 
effect. The company has assets 
of about S500m (£281. 53m) and 
a statement last week insisted- 
that its critics “totally fail to 
produce any adequate evidence " 
that they could improve the com- 
pany's results. 

Yesterday's announcement by. 
Bear Stearns regarding Mr 
Comfeld added: “ He is not. and 
will not be. in any. way in- 
volved ” with the U.S. share- 
holders' group and it would not 
support any nomination of Mr 
Comfeld for election to the 
board. 

Global's annual meeting was 
scheduled for June 4. However, 
the comoany's annual report, 
which . was delivered to the 
Stock Exchange yesterday, is 
understood to contain no con- 
firmation of this date and no 
formal notice of the meeting has 
vet heen given.' 


Improvement 
for Viking 
Resources Tst. 

Pre-tax income of Yfldng Re- 
sources Trust, investment trust, 
rose to £737,340 for the year to 
March -31 1982, compared with 
£4$6.918 previously." Tax . was 
higher at £357.296, against 
£165,479, but started earnings per 
25p share came -through CL15p 
ahead at 0.95p. 

A final dividend of 0.4p (same) 
maintains the net total at 0.8p. 
Net asSeL virtue per share is 
given as being lower at 83.02p 
(105.93p)— with the fall due 
mainly to a general downturn in 
prices of the smaller U.S. ex- 
ploration and service com- 
panies. 

However, the directors believe 
that the portfolio is well placed 
to benefit from (he expected re- 
covery in prices in the cuttwI 
year. As at year end, more thu 
90 per cent br the company's 
assets -.ere <n vested overseas, ' 
predoni tv»oMy in the U.S. - 


THE UNITED STATES DEBENTURE 
CORPORATION p.l.c. 


Extracts from the Directors' Report 

Main Features 

Grass Revenue 

Net Assets 

Per Ordinary 25p Stock UniL- 

Eamings 

Dividend \ 

Net Asset Value 


Year Ended 31st January, 1982 


1982 
£6.800,440 
£1 10,420,791 

5.92p 
5-S2p 
153. Ip 


1QOJ 

£0.480,798 

£96.773.449 


* Change 
+ A3 
+ 14.1 


Dividend and Revenue . 

We are pleased to report s 3.5% increase In after tax revenue available for Ordinary Stockholders to a record 
teve/of£4.OS8mi0ions(T98T£3.95Om3lions). Whilst our gross income from the United Kingdom was •- 
marginally lower at £5.047 millions ( 1981 £5.107 mflfions), gross income from North America wes33J3% - 
higher at £1.532 millions 11981 £ 1. 1 49 mBBons). This increase in North American income was greatly helped 
bv the translation of strong doUar income into relatively weak sterling. Indeed, the sterling rate against the. 
Amencan dollar began the Company’s financial year at $2.3670 and finished it at 5 7 .88 1 0. 

In view of this improved income performance and ateo the better prospects we s6e ahead for 1h» receipt 
of dividend Income in the current year, we are pleased to be able to recommend a final net dividend of 3.9Zj> per 
ordinary stock unit, making a total dividend for the year ended 31st January, 1982 of 5-92p per ordinary stock, 
unit representing a 6. 1%incraase. This is a fuH distribution of the year's income, -J 

In the current year we anticipate that corporate profitability in the United Kingdom wM show a good 
improvement, but that in the United States of America, due to the depth of the recession there, the growth of 
corporate profits is fikefy lobe at a lesser rate than fast year. So whfiat we do not anticipate a very marked 
increase in total dividend income received, it should nonetheless be possible to maintain die current rate of 
dividend. 

Investments i 

The total value of the Company's investments was again a record and grew to £ 1 1 1-338 mil&ons (1981 
£97.899 m 91 tons). The market value .of our United Kingdom investments increased by 1514% as compared with 
the 1 4. 6^ nse in the Financial Times AM Share Index. The market value of our investments in the United States 
of America increased by -12.7% as compared with (he 1 7.0% rise in the Standard and Poor's Composite Index, 
as adjusted for movements in the exchange rate. 

During the year we built up holdings in North American convertible stocks which on 31st January. 1982 
represented a total market value of £3.445 millions or some 1 0.7% of the lotaJ amount invested in North America. 

Our United Kingdom portfolio's undsriying-out-performance of our American portfolio was partiaRy 
counteracted by the weakness of sterling against the dollar. Indeed, the percentage of investments in the United 
Kingdom has barely changed at 7 1:3% 1 1981 70.6%} with that of the United States of America standing at 
26.2% ( 1 981 25.8%). The 03. Gas and Exploration content of our investments has fallen to 18.5% (1981 
25.7%). This fall was caused not by any management policy to reduce investment in energy holdings, but by the 
sharply lower prices of energy shares due particularly to the build-up of the current oil over-supply situation. 

The marked relative under- performance of the American energy sector was ah nest entirely responsible for the 
Standard and Poor's Composite Index showing a better advance than that of our American portfolio which has 
a pronounced bias towards investments in the oil and gas industries. 

Investment Policy . 

In these challenging times for the investment trust movem«rt we considsr it very ir.irvarrrot to r e st g tythB - ■ 

invastm :ni policy o. this Company which remains unclr • i 1 1rrm aft ye-i. Th??\s \s cr „ our objectives 
continue to be to provide stocMiclders with a stead" -v - .■ ip income v>.jst cM.r. .>• 3 "h seceprable rate of 
appreciation in the Company 1 - investments, k is intcidn ■ v f.ese.onjec!' .OS f boo'd OR scJ'foved through the 
medium of equiiy investments in the United Kingdom, v i.iri Jlsrre cf America smj Caiwia. It « no; tiw 
present intention to invest, in a significant way. in othrr .-res - We wish to be known es an investment trust 
providing a relatively high income and having a bias towards investment in the United States of America end 
also in the energy sector. . ' 

With regard to our energy commitment, we admewied^ Hut the short terin rutiook for energy shares 
both m the United kingdom and North America h unproma < :p. wish price: tor crude oil ■*«! rsfmed petroleum 
products likely to remain weak until tha resumption ci war Id economic gr tiWtit WO the rr wilding of 
inventories. However, despite the depressed share pr.r-sof our energy teves'nrnto. wc lr.1 Ibat their quality Is 
such that, when recovery eventually comes, they will once again out-perform the stock meriteta. especially . 
those companies involved in servicing the energy industry. We would stress thot the.Free World's annual 
consumption ol o3 is siiH greater than the amount of annual discoveries. ■. .. 

We intend further to reduce our Investment in Canada by making timely switches to the United States of 
America. It is our policy to retain investments in Canada only if they stand up favourably to American - 
comparison. It is significant that Canadian investments now represent only 2-5% of Our total Investments.' ‘ . 

Whilst our long term target is to heveat least 40% of the Company's assets invested in the United States 
of America, we would nonetheless only be willing to effect this at appropriate levels of the Sterfing/doSer 
exchange rote and provided that this course of action would not unduly impact our total dividend income. 

We win continue to concentrate investment in strongly financed companies with a capacity to increase ‘ 
dividends at an above average rate. " V . 

We consider that stock markets in the United Kingdom and the United States of America wBIboth show 
worthwhie advances by the end of the current financial year, aid that the Standard and Poor's Composite 
Index, as adjusted for likely movements <n the exchange rate, wilt show a greater rate of increase than th» 
Financial Times AH Share Index. We conclude that it is prudent to remain .fully invested at this time. . ' 

Copies of the Annual Report and Accounts can be obtained front: 

Tha Secretary, ..-l - 

The United States Debenture Corporation pJ«, 

Austral House. BasinghnHAvenua, 

London, EC2V5DD. " ' . • f -.rt-.'.v 



h- - 

U[\y 


% * * 








Financial Times Tuesday April 27 1982 


21 



oiiiiectki 

' Hi 


debenwh 

c. 


<-. > 




Summary of Group Results 

28th Feb. 1982 

28th Feb. 1981 

Year ended 

(£ millions) 

(£ millions) 

Group operating profit 

49.8 

■ 44.4 

Share of Associated 



Companies* Profits 

0.8 

0.7 


50.6 

45 J. 

Subordmatedloanmteresfc 

1A 

— 

Payable to Staff tiodfisrProfitShaiang 

49.2 

45 J. 

Schemes 

2.0 

US 

Group Profit before Iks 

47.2 

43.3 

Total Assets 

4,359 

-.3,568 

Proprietors* Fends 

302. 

. 238 


Extracts from the Statement by 
the Governor Mr. Thomas N. Risk 

The Year’s Results 


After including our share of Associated 
Companies’ profits, the total amounts to 
£50.6 million. The completion of the year sees 
Proprietors’ Funds exceeding £300 million for 
the first time in the Bank’s history. 

The Clearing Bank’s own profit, at 
£34.2 million, was £2.2 million less than that 
of the previous year. Net interest earnings on 
sterling business were modestly better, in 
spite of an average Base Bate of 13.27%, 
substantially lower than the corresponding . 
figure of 15.83 % last year. The average level 
of sterling lendmgwas some 26% greater but 
in the conditions of economic recession an 
increase in provision for bad debts was to he 
expected and this factor reduced the benefit 
from the greater volume. In foreign curren 



increased by 26% and operating expenses rose 
by some 15%. 

Profit of North West Securities Limited 
and its Associated Companies amounted to 
£10.9 million, a new record and rather more 
than double the figure of the previous year. 

The British Lin en Bank Limited and its 
Associated Company produced a profit of 
£4.1 million, some 24% higher than last year. 

£1.4 million -is required in respect of * 
inter eston the subordinated floating rate 
notes issued during the year and £2 million 
has been allocated to the Group’s Staff under 
the Staff Profit Sharing Schemes, after which 
the profit, before extraordinary items, 
amounts to £47.2 million. Under the 
extraordinary items, the major element is the 
debit of £7.4 million in respect of the levy on 
banking deposits imposed by the Government 
in last year’s Finance Act; while a significant 
credit item represents the surplus onthe sale 
of our 10% interest in Banque Worms S' A. 
following nationalisation by the French 
Government. After extraordinary items and, 
tax, profit attributable to the Proprietors 
emerges as £39 mi l li on. 

Dividend • , 

The Board recommend payment of a Final 
i Dividend of Up per £1 Capital Stock, 
# . 


making a total for the year of 21p. This 
represents an increase of 20% over the total of 
17 .5p paid last year. 

Balance Sheet 

In "the consolidated Balance Sheet, 
advances and other financings amount to 
£3,155 million, while Deposits to fund the 
lending and other assets total £3,790 million. 

Dining the year and in view of the level of 
foreign currency business we now undertake, 
it was decided to issue U.S.$100 million of 
Floating Bate Notes, through a specially 
formed subsidiary, Scotland International 
Finance B.V. The issue was carried through 
most successfully. In a year in which we 
considered it right to take steps to improve our 
capital position for the development of our 
business and to enable us to serve our 
customers better through difficult times it is 
regrettable to say the least that the 
Government should have virtually confiscated 
part of our capital base. 

Thte Past Year 

These results have been achieved in a year 
which started unpromisingly for the banks, 
with the Chancellor’s misconceived levy and 
continued to disappoint the hopes of all who 
have looked for the elusive signs of revived 
business activity. The Group’s profits reflect 
both the impact of lower interest rates and the 
offsetting advantages of a good spread of 
activities with planned and steady growth in 
all of them. 

The domestic activities of the Bank still 
provide much the biggest single contribution 
to Group profits. The business is growing both 
in Scotland and in England where, despite the 
powerful competition, there is a profitable 
place for a Bank of our size and character. At - 
the same time, we are expanding our 
operations overseas as and when we can see 
profit in doing so. 


Regional Policy in the 
United Kingdom 

The majority Report of the Monopolies 
and Mergers Commission, approved by the 
Secretary of State for Trade in January 1982 
was represented by some as a largely Scottish 
issue. It was not. The Report clearly ^ 
recognised the importance to the United 
Kingdom of slowing the process of 
centralisation and of encouraging 
independent local centres of business 
initiative. It is vital for the health of the 
United Kingdom as a whole that there should 
be a variety of effective countervailing forces 
with their headquarters in the regional centres. 

The Year Ahead 

This time last year we were looking 
forward to a prospect of somewhat lower 
interest rates which has been fulfilled in some 
measure though the corresponding 
improvement in the economy is still not 
evident. However, there is reason to hope that 
we shall see a further reduction in rates 
during this year and that this will lead to an 
increase in commercial and industrial lending 
stemming from a healthy and sustainable 
upturn in economic activity. The Bank is 
ready and well equipped to meet whatever 
challenges and opportunities the year may 
bring and morale is high. 


Salient Features 

from the Annual Report 

Group pre-taxprofitsincreasedby9%. 
Total resources up by 22% 

Dividend increased by 20% 

Proprietors’ Funds exceed £300 
million for the first time. 

Free capital improved to a healthy 
5.5%. 

^ Operating expenses continued to 
grow - but at a more moderate level. 

^ Government levy takes £7.4 million. 

Small business schemes actively 
supported by the Bank. 

sjc Oil and energy business fulfilling all 
promises. 

sjc Strong marketing stance in personal 
and business sectors. 

International business continues to 
grow: issue of $100 million Floating 
Bate Notes. 

sfc Record profits from North West 
Securities and British Linen Bank. 



P MIX OF SGOTUID 











22 

SS* .MINING NEWS 


Mary Kathleen to make 
small profit this year 


BY GEORGE M1LUNG-STANLEY 


THE Rio Tinto-Zlnc group's mazy 
Kathleen uranium mine in 
north-western Queensland ex- 
pects, to make a small profit this 
year, with the greater proportion 
0>F this coming in the first half 
when , moat deliveries are to be 
made. 

Mr J. L. Liebelt, chairman, told 
the~ '.annual meeting that the 
average price for uranium oxide 
is expected to be slightly lower 
in 19S*J than last year. However, 
as prices are denominated In 
U-S. dollars, the continued weak- 
ness oif the Australian dollar will 
tend to offset the effect of lower 
prices. 

Mr Liebelt thus made his 
profit forecast conditional on 


there being no major change in 
the relationship between the two 
currencies. 

The company, which paid a 
dividend of 8 cents (1.2p) last 
year, expects the payment of 
modest dividends to continue, 
but the amounts will depend on 
the cost estimates for rehabilita- 
tion work after the planned 
closure of the mine towards the 
end of thix year. 

Mary Kathleen ■ has brought 
forward its planned closure date 
from the middle of next year 
largely because it ranks as a 
high-cost producer, and the 
limited ore reserves make a 
continuation uneconomic. 

The company has adopted an 
aggressive exploration policy 


Prices hit Philippines groups 


THE CURRENT worldwide 
weakness in metal prices has 
caused Beuguel, the leading 
producer of copper and gold in 
the Philippines, lo announce 
that it i? suspending dividend 
payments. 

The company said the suspen- 
sion would remain in force until 
there is an improvement in 
metal prices. reports Leo 
Gonzaga from Manila. 

In spite of the generally un- 
favourable conditions, Benguet 
had its second most profitable 
year ever in 19S1. with net 
profits of Pesos 190.7m (£13.3m). 


The weakness in metal prices 
was offset to some extent by an 
expansion in mill throughput. 

Two smaller Philippines 
mining companies, the chromite- 
producing Trident Mining and 
Industrial and Z am bales Base 
Metals, a manganese producer, 
have asked the Securities and 
Exchange Commission for 
protection from their creditors. 

The concerns have asked the 
SEC lo declare them ioa“ state 
oF suspension of payments." 
which would prevent creditors 
from instituting foreclosure 
proceedings on their assets. 


Development of Erfdeel 
delayed by Anglo 


Setback for 
Homestake 


SOUTH AFRICA'S Anglo Ameri- 
can Corporation disclosed yester- 
day that the big new Erfdeel/ 
Dankbaarheid gold mine will he 
affected by the recently- 
announced postponement of 
certain capital expenditure pro- 
jects within the group. 

Anglo said it has decided to 
defer the sinking of Lhe Erfdeel 
No. 1 main shaft by at least six 
months, and will make no new 
spending commitments until 
after September 30, the financial 
year-end of Western Holdings. 
This is the gold mining complex 
within which the new supermi ne 


is situated. 

The sinking of the No. 1 
ventilation shaft and other 
relatively minor projects already 
under way will go ahead as 
planned. 

In last week's quarterly reports 
from the Anglo group gold 
mines, many of the companies 
indicated that they were 
deferring certain capital projects 
until the - short-term - outlook 
improved. 

Errdeel has obviously, been 
included because, although of 
substaotial size, ' the deposit is 
comparatively low grade. 


Simon Engineering increases 
profit for tenthyear 


Preliminary announcement for the year ended 31 December 1381 
Group results ' ^ 


'Itundver 


Profit before tax and extraordinary items 

Profit after tax and before extraordinary items 

Profit before extraordinary items, attributable 
to Simon Engineering pic 

Extraordinary items 

Profit attributable to Simon Engineering pic 


Dividends paid: 

Preference shares: 63> (now 42$o plus tax credit) 
Ordinary shares of 25p each: 

Interim 4p per share (3980— 4p) 

Proposed dividend: 

Ordinary shares of 25p each: 

Pinal S.6p per share (1980— Sp) 


Profit retained 


1981 

1980' 

£000 

£000 

339,773 

324,139 

20.328 

19,313 

15,186 

13,391 

13,909 

32,134 

(560) 

7,472 

13,349 

19,606 

39 

39 

1*041 

993 

2,237 

2.053 

3^17 

3,0S5 

10,032 

16,521 

13,349 

19,606 

53.6p 

48.4p 

51.5p 

78.4p 


Earnings per ordinary share: - ===== 

Before extraordinary items 53.6p 48.4p 

After extraordinary items 5I.5p 78.4p 

Extraordinary items: The principal e xt ratnrdinaiyitem is a provision of £0.567m (after tax relief) 
in respect of cost sarising on. the cessation of certain activities. 

Ordinary dividend: The directors recommend a final dividend of 8.6p per ordinary share, making a 
total dividend for the year of I2.6p per ordinary share (gross equivalent 18.0000p,19S0 17J.429p).The 
final dividend, i f con firmed at the annual general meeting to beheld on 14 June 1982, will be paid on 
1 July 1982 to members registered on 2 June 1982. 

B alanc e sheet: 3981 3980 

J-m 

Fixed assets and associated companies 60-3 5L9 

Cash and deposits, less overdrafts ■ 43.4 47.1 

fl t.Hpr net c urrent nss fits 7.3 (5.6) 

111.0 93.4 

Shareholders? funds 88.9 73.5 

Minority interests S-5 7.6 

Lo an capital 10-3 &2 

Provision, for pensions _ 0.6 0.7 

F utur e and deferred tfimfrf nn 2.7 3>4 

mo 93.4 


Kemarl^ by the chaiiroaiijHai^ Harrison 

The severe economic recession of the last two years has been a difScolt-period hnt we have 
come through it well, we have kept up our record of unbroken profit growth since 1972 and 
have further improved the strength of our balance sheet-Forthefirst time in thehistoxy of the 
group our pre-tax profit has exceeded £20m and against the background of depressed world 
tr ading conditions this must be seen as a commendable performance and a tribute to all who 

Much of (Tur success is due to our long-termpol icy of increasing our interaationalspread of 
b usiness and we now benefit from a growing contribution from these overseas activities. Our 
UK companies have also adjusted well, even at generally lower activity levels, in improving 
effiriencyand in reducing the competitive gap against their overseas cgmpetitors.Theyhave. 


BIDS AND DEALS 


Globe Trust moves into 
international management 


with a view to extending its 
reserves, but this has failed to 
find deposits of economic signifi- 
cance and has now been dis- 
continued. 

The present plan Is to wind up 
the company after it has Ad- 
filled its sales commitments and 
rehabilitated the land, but the 
timetable for this has not yet 
been finalised- 

Mr Liebelt offered some com- 
fort for other uranium producers 
when he gave his opinion dial 
demand and supply will be in 
balance later this decade. 

Mary Kathleen is owned as to 
51 per cent by CRA, in which the 
RTZ group has a 572 per cent 
interest. 


Globe Investment Trust, 

Britain’s biggest investment 

trust, is moving into the inter- 
national fund management 

market and has set up a 
Bermuda and New York opera- 
tion to manage investment port- 
folios on a worldwide basis for 
international institutional and 
private clients. 

Globe has hired Mr Francis 
Finlay, head of Morgan 
Guaranty's international invest- 
ment department in New York, 
to be chief executive of Globe 
International, the new 
Bennudad subsidiary. 

Globe International has also 
formed Globe Finlay lac, in 


New York, to specialise in 
international management for 
U.S. accounts, and Mr Finlay, 
an ^ngiishnmn . who has 
worked abroad for 12 years, will 
also be president and chief 
executive of this organisation. 

Mr John P. Clay will be chair- 
man of Globe International and 
Mr Ralph dl Fiore, currently 
director retirement funds man- 
agement of McDonnell Douglas 
Corporation, St Louis. Missouri, 
has been appointed senior vice- 
president of Globe Finlay Inc. 

Mr John Clay said yesterday 
that the purchase of the Tyndall 
group of fund managers, in 
January 19S0, had given the 
group access to domestic related 


Investment cash flow ' and the 
latest move was intended to tap 
international institutional cash 
flows. 


CLUFF 'ACQUIRES 
STRATTON OIL 


Cluff Oil has entered into an 
agreement to acquire Stratton 
Oil Exploration in exchange for 
335,000 of its fit shares. 

Stratton was formed for the 
purpose of applying, in associa- 
tion with Cloff, for a licence in 
the Sixth Round and its sole 
asset Is a 49 per cent interest 
in Licence P305 (Block 20/8), 
for which Cluff is the operator. 


July resumption for 
A. Walker dealings 


TWO ACQUISITIONS 
BY C H. BEAZER 


The SEC has already taken 
this action on behalf of Consoli- 
dated Mines, Winch receives its 
income from a chromite 
property operated by Benguet 
now that it has ceased copper 
production. 

Also in the Philippines, the 
medium-sized copper-gold-silver 
producer CD CP Mining 

announced a net loss of 
Pesos 201.3m for last year, 
compared with a profit of 
Pesos 364,000 in 1980. 

Lower metal prices and high 
interest charges ,were the main 
problem. 


LOWER INCOME from gold and 
a loss on silver operations gave 
Homestake Mining, the biggest 
gold producer in the U.S., net 
profits for the first quarter of this 
year of $2.41m (£ 1.36m), com- 
pared with 512.74m at the same 
stage of 1981. 

Operating earnings from gold 
fell to $4.1m from SI5.3m, while 
silver activities produced an 
operating loss of $655,000 against 
a profit of $lm. 

Lead and zinc also performed 
poorly, leaving the company’s 
uranium operations as tbe sole 
bright spot. Earnings from this 
division more than trebled to 
$3.4m. 


DEALING ARE expected to 
resume in property group, Alfred 
Waiker, at the beginning of July 
to conclude 11 months' quop 
to conclude 11 months' suspen- 
sion while tbe de-merger of the 
parent company is effected. 

Terms of the de-merger have 
now been finalised. The develop- 
ment arm. Walker West, is being 
taken out of the group with a 
value of £700,000 and will retain 
its quotation. The remaining 
construction interests will be 
run as a private company by the 
chairman Mr Raymond Walker 
and his son. 

Walker West, a residential 
development group operating 
principally in Devon will be 
transferred to a new company, 
Alfred Wadker. 

The 5S per cent of the equity, 
not already controlled by Mr 
Walker and his son, wHl be can- 
celled and holders will be issued 
with new shares in the public 
company on a one-fore ne basis. 

Tbe chairman and chief execu- 
tive of tbe de-merged company 
will be Mr John Dooachie. 
formerly managing director of 
property group Ohown Securities, 
who will acquire 15 per cent of 
the shares from Walker family 
trusts. 

Mr Louis Peralta, who will be 


a non-executive director, will also 
buy 15 per cent. 

To comply with the previsions 
of Section 34 of tbe Takeover 
Code, thereafter, a general offer 
will be made for th entire capital 
at 40p per share. Merchant bank. 
Brown Shiply, will place a 
further 8 per cent of the Walker 
family trust's stake with institu- 
tional clients at 39p per share. 
Asset backing is 48p per share. 


LONDON & L’POOL. 


Under an option granted to 
Consult International (a com- 
pany controlled by Mr R. A. 
Shuck). Management Advisory 
Services (controlled by Mr G. W. 
Cross), and Castlebridge (con- 
trolled by Mr J. B. Russell), 
which became unconditional on 
March 31 1982, these companies 
became interested jointly and 
severally in up to a maximum 
of 1,666.667 additional ordinary 
shares of London & Liverpool 
Trust The option will expire 
if not exercised by October 31 
1982. 

Mr shuck and Mr Cross are 
also interested personally in 
these shares by reason of their 
controlling shareholdings in Con- 
sult and Management Advisory 
Services. 


C. BL Beazer (Holdings) 
purchased the capital of Priee 
and Pierce Machinery. Taunton, 
and Price and Pierce Machinery 
GmbH. Essen from the Tozer 
Kemsley Group, on April 22. 

The consideration paid on 
acquisition amounted in aggre- 
gate to £301,438 in cash, which 
may be subject to minor sub- 
sequential adjustment 

Both companies will continue 
operations from their existing 
premises, but their respective 
names will be changed to C. H. 
Beazer Machine Co, at Taunton, 
and C. H. Beazer Machine GmbH, 
at Essen. 

Beazer says in connection with 
its recent rights issue accept- 
ances have now been received in 
respect of 2274273 new ordinary 
(94.5 per cent). The remaining 
131267 new ordinary have been 
sold in the market at an average 
net premium ,14p per share. 


ATTKEN HUME 


SHARE STAKES 


Aitken Home has completed its 
acqusitions of Investment Intelli- 
gence and Key Fund Managers, 
with both offers becoming fully 
unconditional. Its offer to 
acquire The Mutual Unit Trust 
Managers has been accepted in 
respect of 100 per cent and has 
also been declared fully uncon- 
ditional. 

The Stock Exchange has 
admitted to the Official List tbe 
new ordinary shares of 25p each 
and the 10 per cent convertible 
unsecured loan stock, 1990-91, 
issued by Aitken Hume in con- 
nection with the acquisitions. 


Renold — -Prudential Corp has 
acquired 425.000 ordinary units 
and now bolds 2,847,872 (710578 
per cent). 

Land Securities — Prudential 
Corp holding now amounts to 
26,052,333 (7.61 per cent). 

J. Jarvis and Sons — Shephards 
and Chase, acting on behalf of 
a client, prepared to buy up to 

150.000 ordinary at 335p per 
share until further notice. • 

Guest Keen and Nettlefolds— 
J. F. Donald, a director, has dis- 
posed of 6| per cent convertible 
unsecured loan stock to a 
nominal value of £250,000. 

Equity Law Life — Kuwait 
Investment Office is interested in 
L4ra ordinary (6.98 per cent). 
British Rail Pension Trustee is 
interested in 1.237m ordinary 
(6.16 per cent). 

Richard Clay— Trustees of the 
Glynwed Group 1974 Pension 
Scheme purchased 250,000 
ordinary shares on February 1 
making bolding 550,000 shares 
(6.15 per cent). 

Godfrey Davis Holdings — 
Hume Investment Trust has dis- 
posed of 1,750,000 ordinary 
(1.58 per cent) leaving a holding 
of 2.625,000 shares (1726 per 
cent). 

Vinten Group — C. M. Brown, 
director. has disposed of 

20.000 ordinary shares reducing 
holding to 20,000 shares (0.1098 
per cent). 

Jackson Exploration Inc. — 


Melvin W. Jackson Jnr, chair- 
man, has sold 75,000 shares. 

Property Security Iny. Tst— 
L. N. Tucker, director, has 
ceased to be interested in 39.000 
ordinary shares reducing hold- 
ing to 2,101298 shares. 

Town and City Props. — B. G. 
Jennings, director, has sold 

47.000 ordinary shares. 

Marley — Directors O. A. A. 

Aisher, R. A. Aisher, T. J. 
Aisher. and W. J. W. Courtney 
each acquired 75,000 ordinary 
under share purchase scheme. 

Ewart New Northern — 
Amadeus Co. has acquired 
further ordinary shares bringing 
holding to 92,997 shares (14.338 
per cent). 

Berwick Timpo — Camparo 
Group purchased 150,000 shares 
increasing holding to 360,000 
(6.4 per cent). 

Habit Precision Engineering 
— -Following the recent purchase 
of 30,000 ordinary the interest 
of Wymanor Investments con- 
trolled by the chairman of the 
company, Mr J. E. M. Mayne, 
has increased to 800,000 (24.0 
per cent). 

Branar Trust — G. M. Sim- 
mon ds and R. L. Owen sold a . 
total of 400,000 ordinary to 
institutional clients of Charles 
Stanley & Company. Proceeds 
will be utilised to reduce per- 
sonal borrowings. G. M. Sun- 
ni ends remains interested in 

245.000 ordinary and R. L. Owen 
in 181,800 ordinary. 


UNFOOD COMPLETES 


FEDERATED LAND 


Lazard Brothers and Co„ has 
announced that acceptances of 
the offers made on behalf of 
Federated Land for Estates and 
General Investments have been 
received for 1.07m ordinary stock 
(5.9 per cent) and 133,901 pre- 
ference stock (37.7 per cent). 

The formal offer on behalf of 
Tare rose, wholly owned by the 
Trustee of the British Steel Pen- 
sion Fund, to acquire Federated 
is being despatched to Federated 
shareholders shortly. The 
Directors of Federated have been 
advised that the Trustee has now 
acquired shares which, represent 
more than 50 per cent of the 
share capital. 

The directors of Federated 
have decided that Federated's 
offer to acquire the capital of 
Estates should lapse. 


RESULTS AND ACCOUNTS IN BRIEF 


RENTOKIL (limber preservation, pest 
control) — Results for 1981 reported 
March S. Shareholders funds E33.7lm 
(£29.84m): long-term loans El. 65m 
(Cl 48m): fixed assets C22.95m 
(DO. 83 ml : current assets C 39.65 m 
f £33. 98m); current liabilities C27.62m 
(£23. 08m) : decrease in net lequid lunde 
£2. 44m (CT.43 it» increase). Direciors 
expect " healthy " increase in profits 
in 1982. Meeting: East Grinslaad. May 
4. 10.30 am. 


IB STOCK JOKNSEN (bnck manufac- 
turer)— Results for 1881 reported April 
3 with prospects. Group fixed assets 
£54 ,29m (£50. 15m); net currant assets 
n2.85m (£9. 95m); shareholders* funds 
£54.S7m (£46.19m): net cash balances 
decreasod by C70.5m (£8.49m). Meet- 
ing. Hyde Park Hotel, W, May 12 at 
11.30 am. 


ASH AND LACY (metal and plastic 
sheeting ms nu lecturer) — Results tor 
1381. reported April 7. Group fixed 
assets £6.42m (£5.67m). Net current 
assets £8. 04m (E8.16m) — short-term 

Government aocoriuaa E2. 15m (El. 1m): 
short-term deposits £1 .45m (C2.02m) 
and overdrafts £273.000 (€342.000). 

Mealing. Edgbaston May 10 at noon. 


Save been limited and fiercely-contested international .opportunities. . 

We shall continue to support these efforts and maintain our growth strategy cy giving 
priority to investment in new processes and products. 

It is hopedthatweshaU soon ^the much-forecast upturn intiieUKand-world economies 


our companies. Nonetheless, we s h a l l continue to make every effort to improve our m a rk et 
and profit performance. 


simon 


Cheadle Heath, Stockport Cheshire SK3 QBE 
Food Engineering] ’Mnmfnriujing; Pmccsa Plane Contracting; 2£erdzading and Storage; OU Services 


CATTLE’S (HOLDINGS) (financial 
services, retail trading, insurance brok- 
ing)— Results for 1981 snd prospects 
reported March 23, 1982. Shareholders* 
funds 03.64m (£3. 42m); fixed assets 
£5. 15m (ES.IBm): current assets 
r34.3Bm l£35.92n>): current liabilities 
£25 -3m (f27.07m). Increase in work, 
ing capital £575,000 (El. 3m decrease). 
Meeting: Hull. May 13. 

ENGLISH AND SCOTTISH INVESTORS 
—Results for year to January 31 1982 
reported February 23. Shareholders' 
funds E37.Q5m (£33. 38m): loan capital 
£3. 42m (El. 3m). Investments at valua- 
tion £28. 83m |£34.39m). Net current 
easels £1 .65m (£0.29m). Liquidity In- 
creased C0-32m (£3.7m). Meeting: 
2 St Mary Axe. EC. May 12. 2.30 pm. 

CHARTERHOUSE PETROLEUM foil and 
gas exploration and production) — 
Results lor 1981 reported March 17. 
Shareholders' funds £32. 33m [Ql.lm): 
medium term borrowings £3.31 m 
'(ftLSSm); fixed assets El 8.8 m 
(£18.42m); net currant assets E28.48m 
(£24.57m) including short-term borrow- 
ings 62.28m (£1A7m): increase in net 
liquid funds CS-4m (E22.35m). Meet- 
ing: Ironmongers Hall. EC. May 13. 
11.30 am- 

APPLEYARD GROUP (vehicle distri- 
butor) — Results for 1381 reported 
March 30. Shareholders' funds £7.32m 
(£9.01 m): loans £2- 72m (E2.78m): fixed 
assets £B07m (CB.S9m): net current 
assets £3. 47m (£4.88m) including 

secured bank overdrafts £2. 94m 
(£540.000); increase In nst borrowings 
E2.34m (£4 14m decrease). Accounts 
for 1381 show provision gl £43.000 
compensation to a director lor the 
termination of his executive appoint, 
meets. Meeting. Leeds. May 13. 


RUBEROID (twddtng products, con- 
tracting. reein, pep or and piastres)— 
Residts for 1961. reported Apnl 8, 1982. 
Group fixed assets £8. 87m (£6.8m): in- 
vestments Cl. 18m 10.08m): net current 
aseis £5 47m (EA.B&m). Shareholders' 
funds £14. 16m (Ell. 32m). . Cash 
balances increased £312.000 (£51.000 
decrease). Chairmen says Instinct in- 
forms Mm that company wjK continue 
on its planned course of profitability. 
Meeting, Dorchester Hotel, W, May 13. 
12.15 pm. 

GRAMPIAN HOLDINGS (eons r ruction, 
pilot hire, transport, light engineering 
and re taring }— Results snd prospects 
for 1981 reported March 31. 1982. Fixed 
asset* CT3.77m f£12-47m); net current 
assets 0. 84m (£6. 4m): shareholders' 
funds €14. 47m (£16, 56m). Decrease in 
net liquid funds F445.000 (increase 
€134.000). Meeting: Glasgow, May 14. 

WILLIS FABER (insurance broker)— 
Results i or 1681 reported March 24. 
Group shareholders’ funds £58 53rn 
(£30.2Bm). Loans £8.2m (£&-2m). Fixed 
assets £27. 38m (£27.99m). Net current 
assets £12. 72m (€8. 56m). Investments 
£23. 09m (£16. 18m), Capitol eonrmit- 
menes £10.71111 (E1,75m), Cheimrren 
says group «a lr» « sound condition, 
tbe directors are olont to opportunities 
end have confidence in the future. Meet- 
ing, 10, Tnoity Square, EC, June 2, 
at noon. 


Group fixed assets €708.117 (£883.207) 
shareholders' funds €370.109 (earns): 
net current assets E465.2S1 (£402.459). 
Meeting, Wettincnon, Telford. Shrop- 
shire, May 27. noon. 


PORTALS HOLDINGS (water treat- 
ment. engineering, papermaking)— Re- 
sults for 1981. reported Apnl 8, with 
prospects. Group fixed assets £44. 66m 
f £34. 57m); shareholders* funds £63.1 1m 
(£48. 72m): (oen capital £9.Q2m (nti)r 
tern loans £5. 99m (£5. 08m): net cur- 
rent assets £38. 49m (G5.31m); in- 

crease in deposits and bank balance*, 
less overdrafts £22.91 m (£433.000). 
Meeting. Ho wa r d Hotel. WC. May 20. 
12.30 pm. 


SLOUGH ESTATES (fndusoi** and 
commercial property development) — 
Res uftx for 1881 and prospects reported 
March 25 m lutl preliminary statement. 
Group shareholders* equity 045 .61m 
(£283. 42m). Bank loans and overdrafts 
£28. 28m (£47 02m ) . Fixed assets 

€488. 12m (£331 .94m). Currant assets 
€32.61 m (£15. 14m). Current babitities 
€24.2Sm (C17.9Hn). Net assets em- 
ptoyed ESOl.OZm (€392.1 2m). Meeting. 
The Savoy Hotel. London. W.. May 19. ' 
230 pm. 


S. CASKET (HOLDINGS) (clothing 
distributor and retailer) — Interim divi- 
dend Q.9p (same)— wamer on 400, CM 
ordinary. Salas for .hall year to 
December 31 1981 £9,633.000 

( 0.08 2.000) and profit £256.000 
(£252,000), to* nH (same). Trade 

generally 13 difficult with mar&ins under 
pressure and in retail perticuioriy con- 
tinuing High Street recession is 31W 
affecting reeutu. say direciors. 

ALBANY INVESTMENT TRUST— P jr >a[ 
dividend 1.45p making 2. Cop (2p) tor 
yeer to February 28 1362. Nat revenue 
£113,073 (El 10.260) after tax 155.518 
(£53,030). Net asset value per share 
54.540 (53.70). 

MACFARLANE GROUP (CLANSMAN) 
(packaging, plastics, warehousing) — 
Results tor 1881 wnh prospects 
reported Apnl 6. Shareholders' funds 
£9. 04m (£3. 26m). Fixed asses £77. 26m 
(£7.52m). Net current assets £2. 07m 
(£0.95m). Bank overdraft EO.fclm 
(£1 .96m), Increase in bank balances 
and short- term deposits £1.07m (£1-88m 
decrease). Meeting, Glasgow, May 18. 

FIRST CO-OP BtATlVE FINANCE 
[formerly FC Finance)— No ordinary 
dividsnd (nil) lor 1881. Turnover 
£K.75m (£64 58m). Pre-tax loss 

Cl .73m (loss £204. COO) after interest 
£7.09m (£S.2Vm), but rncorootating 

atswates profits £166.000 (€184,000). 
Tat £84, COO (credit £161,000). Extra- 
ordinary credit ras.COT (nil) 

J. E. ENGLAND AND SDNS fcon- 
veniaircB foods)— Results for year 
ended January 2. 1982. ready known. 


■ WILLIAM BAIRD (manufacturer and 
distributor oi cfcxhing. rainwear, casual 
wear and engineer) — Results for 1981 
reported April 7. SharehpMors* funds 
€48 .48m (£45. 1m): fixed assets €1 8.12m 
(618. 82m); current assets £32. 75m 
( £57. 8m). ineluding debtors £25. 36m 
(C19.73m); net assets £52.93m 
fC48.O0m). Meeting, Glasgow. May 
20. rtoon. 


PlRMlN AND SONS (badges, buttons. 
miKtaiy ornaments) — Results tor 1981 
reported March 25. Shareholders' funds 
£T6m (E1.49m). Fixed assets £376.000 
(£703.000). Current assets £t.64m 
(El .39m), including bank, cash and 
shotKwm deposits £173.000 (£296.000); 
current ii-rf* lines £705,000 (£579.000), 
including bank overdraft nif (€93.000). 
Directors intend to pay net interim 
dividend of l5p "(Ip) for current year 
to reduce disparity between interim 
and final payments. They ere hopeful 
of satisfactory year. Meeting; Birsnrng- 
hem. May 19. 12.1S pm. 

P. J. C. lillet (consmtouin. mano- 
f&ciunngj— (or year ended 
January 21, 1982. reported Apnl 16. 
Group fixed assets £23. 29m (£T4,84m); 
net currant assets £1B.32m (rt5.58m): 
shareholders* funds £34.45m (£28.69m). 
Meeting. Glasgow. June 1, noon. 

WM. MORRISON SUPEBMAWCETS- 
Resuft* for year ended Janaary 30. 
1932, reported Apnl 16. Group fixed 
assets £31. 19m (£26.31m): nat current 
liabilities £5. 63m (£4.6Bm) : share- 

holders' funds £25. 45m (£21 .51m): not 
fcq»d. funds increased by £442.000 


(023,000). Chairman pays fading 

(hiring first two memrh* nt mirmnr 


during first two months of currant 
year slightly down In volume leans. 
Meeting. Bradford. May 2o. in am. 


Financial Times Tuesday April 27 19S2 


LONDON TRADED OPTIONS; 

April 26, Total Contracts Sosa Calls 2880 Puts «38 - 
| April I July . Oct-- 

Ex'rdaajctoslngj ^ (Closing V o|. C *2$ W !?I VajL • 

1 prioojortar ( vo) * offer. } ' vo '* qrfar> T* 



’ Linfood Holdings has completed 
the sale of Its delivered whole- 
sale business to a company, AFD 
Holdings, formed for the purpose 
by six senior managers of the 
business. 

Consideration was about £21m 
settled by a cash payment of 
£14m and tbe issue to Linfood 
by AFD of £7m of ' loan notes. 
It was based on an estimate of . 
the value of assets purchased 
by AFD and the repayment of 
intra-group indebtedness. 


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Mks ft Sp. (0 
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Shall (e) 
Shall to) 
Shell (p) . 


25 64 

18 125 

1 — 

58. - 

88 15 

5 86 

8 35 


97 

. 81.- 

66 - 


84 ' 


45 

rv 

57 


28 

; 1 

13. 


is : 

-■f: 

98 


44 

i 

26 

■'•■4 

14 

. 

24 

. 3 , 

29 

td. 

IB 

lo 

33 


23 

100 

10 

' 

7E 

■ .1 


Barclays to) 
Barclays (d 
Barclays (p) 
Barclays (PI 
Imperial (e) 
Imperial (c) 
Imperial to) 
Imperial <p) 
imperial (p) 
Las (no (cj 
Laamo to) 
Lasmo (c) 
Laamo . toV 
Lasmo id.; 
Lasmo to). 
Lonrho td 
Lon r ho (c) . 
Lonrho <p) 
p&o ic) 

P ft O io) 
Racaf (Cl 
Race! (P) 

RTZ (Cl 
RTZ (ci 
RTZ to) 

RTZ (p) 

Vaal Rfs. (e) 
Vast Rfs. (ci 
Vaal Rfs. to) 
Vaal Rfs. (PI 
Vaal Rfs. (p) 
C- 


85 

_ 

45 

2 

— 

8- 

4 

8 

9 

22 

2 

27 

181* 

64 

211* 

9 

49 

14 

2«* 

8 

8U 

2 

8 

■ 51* 

51* 

— • 

7t« 


5- — 

91* 11 

87 1 

87 1 

47 - 


rquiO 

e i!iP^ s 


JS 4 - 
4 — . 


5« IS 
3 1*! - 


3 60 1 

139 40 

4 — — 

- 27 1 

5 11>* - 

- 81* 3 

10 • 6 — ' 

- : - 6i* -. 

4 Bl*f" — 
PfcPut 


EUROPEAN OPTIONS EXCHANGE 


May I Aug. Nov. i 

Vol. | Last Vol. | Lost Vof. | Last | 


GOLD C 83001 

GOLD C 83501 

GOLD C 53751 

GOLD C 8400 

GOLD C S425i 

GOLD C 3450) 

GOLD P 8300 

GOLD P 6325 

GOLD P So 50 

GOLD P 8378 

GOLD P 8400 

12S 4 NL 81 87-81 

C F.UOI 
O F.112,50 
C F.119 
P F.112.50 
P F.llBI 


24 20 

137 8.60 

23 5 

4 1.70 

20 0.60 


16 . 2.90 
74 10.60 
84 20 

2 39 


- " - W361JM 

■8 - 53 

117 37. . ” 

7 f »- “ 


Vl.tlf" i' 1 '' 

Jii'lllH! 


j mid '-if 


60 l.XO 


5^0 500 rs.70 .[F. 11 6.70 

3.70 70 3.70. „ 

a ..79^:*A0. .. „ 
0.30' . - ■ - . 

- 106 1AO ' - 


10i« NL 80 86-95 
C F.100I 
• C F.I02DO 
C - K.1C« 

n r- Enl 


p F.ioa.eoj 
11U NL 82 884)2 
G F.102.501 


2 4.30 - - (F.103JKJ 

87 S — - „ 

104 1.60 W 1.60 I . - n 

- - 40 IJfO 


P.10S 

F.107.60 

F.103 


350 2.80 

100 080 


70 r 3JO 

200 J 1.80 


200 ( 0.50 i — | - 


ABN C 
AKZO C 
AKZO C 
AKZO C 
AKZO C 
AKZO P 
AMRO C 
AMRO C 
HEIN C 
HEIN C 
HEIN C 
HOOG C 


• F.300J 
F-231 
FJ17D0I 
F.SOj 
FJ12.60 

■as 

F.85 
' F.55 
F.60- 
F.60I 
F. 1 7.60 


July 

16 I 7 
10 6.401 


711 3 

742 1 J30 1 


68 0,60 
15 1.70 


17 I - 5 f 

18 I 1.50 Al 


18 ; 1,50 A 
57 ] 6.20 
20 1.50 

16 3.50 

10 | 0D0 


19 5 

20 1.50 

21 6.60 A 

50 2.60 


- | FJ. 05.10 

S3 2.60 if 

136 1.50 „ 

8.1 1.70 j,- 

Jan. 

-. f - FJ04 

- . - F-50.6O 

20 3.70 . . 

56 2.80 „ 

35 1.70 ' „ 

60 i. .3 „ . 

- - F.54.60 

11 2.50 


KLM C 
KLM C 
KLM C 
KLM P 
KLM P 
NEDL C 
NEDL C 
NEDL C 
NEDL P 
NEDL P 


9 12 

64 8.90 

170 3.50 


vu a.ou | 

63 2.60 

26 7.20 I 


26 7J20 

83 . 7 

78 1.60 

60 . 1 


6 10.50 
38 6 

20 4.80 


1P.17" ■' 
IF.1Q8J0 


. 7 7.50 B 
10 3 B 


PHIL C 
PHIL C 
PHIL C 
PHIL P 
PHIL P 
RD C 
RD C 
RD C 
RD P 
RD P 
UNIL C 


F-22.50! 

F.25 

F.27.50 

F.25 

F.27.501 

F.80, 

F.90 

F.lOO 

F.80 

F.90 

F.160) 


— | — ' 7111.20 1F • 

13 3^20 . - — FJ25.40 

37 1.70 A 32 9.20 „ 

59 0.80 236 1 

— - 60 IDO 

— — 10 3.50 . 

25 14 - - „ 

105 6.20 20 6,70 „ 

121 2D0 61 3J80 ft* 

16 1.30 - — 

21 4 11 5.20 

— — - _ [F.15EL2Q 

Aug. 1 Nov. 


SLUM C 850, - 1 — | 

TOTAL VOLUME IN CONTRACTS: 

A=Asked B=Bld 


I ' 2781 
7392 . 
C-CaJl 


- | - 


"PV \ 


M. J. H. Nightingale & Co. Limited 


27/28 Lovat Lane London EC3R 8EB 


Telephone 01-521 .1212 


1981-82 
High Low 
130 100 


Company 

Ass. BriL Ind. CULS... 


Gross Yfald Fully 
Price Change'. div.(p) % Actual taxed 
.130 — • 10.0 7.7 — — 


75 

62 

Airspning 

73 

. — * 

. 4J 

8 A 

11.6 

16D 

51 

33 

Ar mirage & Rhodes..,,.. 

• 44 


4.3 

a.a 

3.7 

8.3 

205 

187 

Bardon Hill 

200 

— 

9.7 

o 

9.7 

11.8 

107 

100 

CCL llpc Conv. Pref.... 

107 

_ 

15.7 

14,7 

— 

— 

104 

81 

Deborah Services 

82 

— 

6.0 

3.7 

3.1 

5.8 

131 

97 

Frank Horsell 

129 

— 

6.4 

5.0. 

11.6 

233 

83 

39 

Frederick Parker 

76 

— 

6.4 

8.4 

3.9 

7.4 

78 

46 

George Blair .'. 

54 

— 

— 

— 


— 

102 

33 

Ind. Precision Castings 

96 

— 

7.3 

7.6 

8.9 

10.4 

108 

100 

tore Conv. Pref 

109 

' 

15.7 

144 



113 

94 

Jackson Group 

39 

— 

7.0 

T.T 

3.1 

7.0 

130 

108 

James Burrough 

113 


8.7 

7.7 

8.2 

10.4 

334 

240 

Robert Jenkins 

24* 



31 J3 

12.8 

3.4 

8.B 

64 

51 

Scruttons "A” • 

64 

— 

5.3 

8.3 

8.8 

S.1 

222 

168 

Tarday & Carlisel 

169 

— 

10.7 

6.7 

5.1 

9.5 

15 

10 

Twinlock Ord 

131, 


— 

_ 

_ 

— 

80 

66 

Twin lock 15pc ULS 

- 80 


15.0 

i8.a 

■ — 


44 

25 

Undock Holdings 

25 

— w 

OJ3 

12.0 

4 S 

7.8 

103 

73 

Waiter AlexanSdr 

BO 

_ 

€.4 

0.0 

5-3 

9.3 

2S3 

212 

W. S. Yeates 

231 

— 

14.5 

6.3 

6.0 

1Z1 


Clive 

Hold 


Prices now available bn Presto) page 48146. 


NEW FOCUS ON CONTRACTING OUT 


A different point of view, perhaps, from that . 

• adopted by most pension advisers is given in our 
latest publication which discusses the' new terms 
and questions some current assumptions. For a - 
copy, attach this to your letterhead and send to: 

MARTIN PATERSON ASSOCIATES LIMITED 

10 Buckingham Place. Mmdon, SWifc 6HT 
Telephone: 01-828 7243 


LOWLAND INVESTMENT — Interim 
dividend Up (l.75p). Gross- Incoma 
half year to- March 31 1982 £339.893 
(£350.841). Interest and expenses 
£48.078 (£80,928) and tax £95.072 
(£87,873), laaving net earnings 
£196.743 (El 82.042). Earnings per 
share 2.51 p (2.32p). Net asset value 
per share 115.3p (103. Sp). 

DUFAY BITUMASTIC (surface coat- 
ings) — Results lor 1981 already Known, 
Group shareholders' funds ’ '£S.47m 
(£5 .Sim). Nor currant assets £3. 07m 
(£3.6m). Fixed assets C3.6m (£3.71m). 
Net decrease in. ..working . captul 


£580.000 .(£225.000). Capitol commit* 
mento £192JXX) (€36.000) ~ Chairman 
says results for .current year should bo 
very pleasing to report. Meeting. 
Winchester House, EC, Msy 14. noon. 

MERCHANTS . TRUST — Result* t» 
year to January .31. 1fi82 • report** 
March 15 tnveabnenia at valuation 
€71 .8 5m (£67.52m); -n6t- current, aaaat* 
£379.039 (liabilities £2.87m): thata- 
holders* funds £69.71 m : . (£82-01in). 
increase in liquidity ' £1.63m (£3.57rn 
decrease), Prudential Corporation holds 
14.9 per cont of shares, Mebft'nffr 20 
Fan church Street EC, May . .14 
lt.45 em.. • - .j 




23 




Financial- Times' Tuesday April- 27 1982- 

Coorpasfes and Market* 



UK COMPANY NEWS 





The Legal & General Group 


many of our markets and international 


market for many years to come 




Clive Discount 
Holdings FLC 

Resulfe for the year ended 31st March 1982 • 


1982 

1981 

£'000 

£'000 

li 086 

1,032 

391 

369 

695 

663 

417 

:. (246) 

£1,112 

£417 


Consolidated profitfor the year 
after rebate, taxation and 
Jronsferto contingencies reserve 

Dividends 


Balance brought forward 
Balance carried forward. __ 


le director recommend the payment of afinal dividend 
of 1.60pence per share, payable on ldfhJune 7982. 
This represents an effective increase of approximately 
7.0?6 over the previous yea t 

lareholders* Funds have Increased by £695,000 to 
£6,725, 000O98TE6, 030, 000). 

T Royal Exchange Avenue, London EC3V 3LU 
Telephone: 01*283 1103. Telex 883431 ‘ 


Brook Street losses at 
£1.5m: nominal payout 


SECOND-HALF losses at Brook 
Street Bureau of Mayfair were 
lower than those in the first-half, 
as expected. But the clerical and 
administrative s taff agency still 
finished *1981 with pre-tax . losses 
of £1.53m, against profits of 
£1.34m. 

A nominal final dividend of 
D.lp net is proposed, the group 
having omitted an interim pay- 
ment Last year's total was 
2.135p. 

The directors say it would be 
unrealistic to assume that the 
group will return to profitable 
trading before the autumn 
because the level of permanent 
platings 'has remained depressed, 
although the demand for 
temporary staff has continued to 
increase. 

Midyear losses were £890.842 
<£754,522 profits), but a signifi- 
cantly reduced deficit was 
expected in the second half. In 
the event it came through, at 
£636,287 ' 

Losses per lOp share are stated 


at 10.39p for nhe year, against 
earnings of 7.49p. after a tax 
credit of £452.487 (£565,840 

charge). 

Turnover was down from 
£22 ,06m to £14. 92m. 

The directors say the effect on 
shareholders' funds of trading 
losses so . far sustained is 
mitigated by the recovery of tax 
paid in previous years- The value 

of the group's freehold and of 
certain leasehold premises is in 
excess of that shown in the 
balance sheet, they add, although 
it has not been thought 
appropriate to Incur the costs of 
formal revaluations. 

• comment 

A helpful tax credit means that 
1981’s attributable loss wipes off 
only a quarter of Brook Street's 
net .worth, putting it at £3.3m. 
The shares at 25p give a market 
capitalisation for the company 
of £2.57m. These are not happy 
times for Brook Street. Cash 


balances, about £28m at the end 
of 1980 with no debt, are now 
significantly lower, although the 
company says its cash equals its 
short-term borrowings. Second- 
half losses were greater than 
feared, and are expected to 
continue at least until the 
second half of 1982. Brook has 
identified hopeful signs in the 
current year. Temporary busi- 
ness, it says, began picking up 
in March. From its experience 
in these things, it says that 
permanent jobs should start 
moving six months later or in 
September. But of course, If 
wishes were horses. . . . 


Clement 
Clarke 
at £ 1 . 62 m 

TAXABLE PROFITS of Clement 
Clarke (Holdings), dispensing 
optician, improved from £I.33m 
to £1.62m for 1981, including an 
amount of £362.798 in respect of 
arrears of professional fees. 

Turnover reached £13. 51m, com- 
pared with £12. 54m. 

Tax took mare at £743,000 
(£412.000) leaving the attribut- 
able balance lower at £878,000 
(£918,0001. 

Although stated earnings per 
25p share declined to 13.72p 
(14.3Sp) an increased final divi- 
dend of 1.74p (l_5125p) lifts the 
net total from 2.665p to 3.0D75p. 
Dividend payments absorb 
£192.000 <£171,000). 


Bank warns on urban decline 


BY OUR BANK IMG CORRESPONDENT 


IT IS vital, for the UK that.it 
should retain - independent 
financial institutions based .out- 
side London if it wishes to stem 
the urban decline of areas such 
as the North East sod Mersey- 
side. Mr Tom Risk, the governor 
of the Bank of Scotland, says i 
the bank's annual report lor 
1SS1-82. 

Commenting on the majority 
report of the Monopolies and 
Mergers Commission, earlier this 
year, blocking the rival bids for 
the Royal Bank of Scotland, Mr 
Risk says the debate was repre- 
sented as a ** largely Scottish 
issue.” 

' “ It was not. The report clearly 
recognised the importance to the 
UK of slowing down the process 
of centralisation and of preserv- 


ing and encouraging independent 
local centres of ' business 
initiative and enterprise 
wherever they exist. 

“ Experience, not only in 
Scotland but also in. for example, 
Merseyside and -the North East, 
has demonstrated the truth that 
while- London- is still, and for 
obvious reasons always will he. a 
powerful magnet it is vital for 
the health of the t'K as a whole 
that there should be a variety 
of effective countervailing forces 
with their headquarters else- 
whrre. 

** Nowhere is this truer than 
in the 'financial sector where the 
value of a different perspective 
has been demonstrated re- 
peatedly," 

“Fortunately. the revolu- 


tionary developments in com- 
munications technology have 
already reduced any past 
geographical disadvantage to a 
point of insignificance." 

Mr Risk says the economic 
pressures of recent times have 
shown through most vividly in 
the clearing bank itself, where 
profits (including currency earn* 
ingsi slipped from 134. 6m to 
£3'2.4m in spite of a 34 per cent 
increase in average sums lent. 

North West Securities, the 
group's finance house, more than 
doubled its pre-tax profits to 
£llm. 

The Bank of Scotland's annual 
meeting will be held on May IS 
at 12.15 pm at the bank's head 
office in Edinburgh, 


Clarke 

Nickolls 

progress 


A RISE in pre-tax profits was 
shown by Clarke, Nickolls and 
Coombs, property investor and 
developer, for 1981. The surplus 
rose from fS-H.OOO ro £2.lSm. 
with £940.000 against £542.000 
coming in the second half. 

The final dividend is being 
lifted from 2.25p ro 2.75p, which 
raises the net total from 4p to 
4.5p per 25p share. 

Sales of land and buildings 
were lower at £1 Jim, against 
£I.54m. Gross rents and payments 
for services were little changed 
at £802,000 (£842.000). 

There was a charge for tax of 
£76.000. ngainsL a previous credit 
of £455,000. 


Equity & Law increases 
emphasis on Far East 


Equity and Law- Life ’Assur- 
ance Society last year invested a 
substantial proportion of its new 
investment money on UK busi- 
ness in overseas equities, with 
particular emphasis in the Far 
East. 

There was £44mof new money 
from UK business and £20m of 
this was invested in Japan, £5m 
in North America and £4. 5m in 
Eur apeak properties. In addi- 
tion, £2.5m was used to repay 
the last of the loans used to 
finance overseas equity invest- 

ment In previous years. 

In addition, £16m was 

invested in Holland and West 
Germany against the liabilities 
under policies issued in those 
t>} ’.rite countries. A further £34m was 

■ v '*> LlCHMiE i nvest *d under the Society's 

unit-linked business. 

Long-term business funds of 
the group rose by more than 

S. Lyles rises 
to £257,000 
at midyear 

Pre-tax profits of S. Lyles, 
carpet yarn spinner and .dyer, 
rose from £202^364 to £256,929 in 
the six months to December 31 
1981. on unchanged turnover of 
£5.56m. 

Mr John Lyles, the chairman, 
says that shortly after reporting 
in his last statement an improve- 
ment in trading conditions, the 
imposition of higher interest 
rates started to have an adverse 
effect on the company's home 
market 

This, with the bad winter, 
caused home volume to be 
'reduced to such an extent that 
further redundancies were made 
in February and their cost was 
met during the period under 
review. 

Home trade has since 
improved and exports remain 
promising, he says. 

The interim dividend Is 
increased from 2p to 2.5p net to 
reduce disparity. Last year a 
total of 6.25p was paid from tax- 
able profits of £637,695. Earn- 
ings per 20p share for the half 
year are shown as 4.21p (6.95p) 
and as 4.21p (2.9p) before 
release of deferred tax on stock 
relief. 

There was a tax charge of 
£34,000, against a credit of 
£70,000, leaving net profits down 
from £272,364 to £172,929. 


£100ni last year to £1.15bn, of 
which £180m came from nnit- 
linked business. * Annual 
premium income rose nearly 9 
per cent to £L09m and single 
premiums by more than 25 per 
cent to £28m. Investment 
income was 16 per cent higher 
at £94m. Claims and expenses 
were 17 per cent higher at 
£124m. 

Mr P. D. J. H. Cox in his chair- 
man's statement referred to the 
substantia] rise in expenses 
from £25. 3m to £32. 3m. He 
pointed out that inflation, 
exchange rate differences and 
the expansion of the group's 
operations particularly in Ger- 
many acounted for much of this 
rise. But there were also large 
non-recurring costs in relocating 
work from the London head 
office^ 

Slingsby cuts 
dividend to 1.2p 

Slingsby is halving its dividend 
to 1.2p, with the final being cut 
from I.Sp to 0.6p. . 

The company, ■ which 
produces -trucks, ladders and 
trailers, made a profit of only 
£2.055, compared with .£38,454. 
after charging interest of £7.036 
(£19.546). This meant that a loss 
of £5.846 was incurred in the 
second half. 

Sales for the year were some- 
what lower at £2.7Sm, against 
£2.93m. There is no tax charge 
this -time (£675 eredti.1 . Earnings 
are shown at 0J2.p (3.91p). 

On a CCA basis there is a loss 
Of £S1,330 (£78,323). 

Clark Shoes 
moves up 

A 40 per cent increase in profit 
before interest and tax is 
announced by C, and J. Clark, the 
Street, Somerset, based shoe 
manufacturing and retailing 
group. 

Net sales .rose 43 per cent to 
£473. 46m and the profit came out 
at £25. 75m. Part of the increase 
was a result of the acquisition of 
K Shoes, and the fact tbat the 
accounting period this time 
covers 13 months (to January 30 
1982) against the 12 months 
reported last year. 

On a comparable 13 months 
basis net earnings are up by 10 
per cent " 


Dunlop S. Africa rights issue 


Dunlop South Africa, 51 per 
cent-owned Dunlop International 
AG. is making a rights issue on 
the basis °f IS new shares for 
every 100 held to raise R15.5m-— . 
£P.34m at current rates of 
exchange. 

Dunlop International will take 
up its full entitlement of the 2.7m 
shares on offer with the balance 
of the issue being underwritten 
by Dunlop Holdings, the ultimate 


haQding company. 

The money being raised is to 
fund a portion of Dunlop South 
Africa’s expenditure programme, 
including expansion ' and 
modernisation of existing produc- 
tion facilities and the extension 
of its industrial and consumer 
products range. 

In 1981 Dunlop SA made pre- 
tax profits of RSI. 5m on turnover 
of R211m. 


care for 


than in 1980 in spite of improvements in the 
results from underwriting in the UK The 
continuing overcapacity in world re-insurance 
markets is particularly disturbing. 


years 
income. ' 


and pensions policy holders and to boost long-term 
profits for shareholders. 

Looking ahead, we believe our acquisition of the 




Hig hlights from the Accounts 


Group profit 

Investment income 
Long-term funds 
Profit & loss account 

Long-term profits 

General insurance 
underwriting loss 

Shareholder s’ dividends 

Policyholders’ bonuses 

Group funds 

If you wish to receive a copy of the Report & Accounts, or 
are interested in any of our insurance policies, please tick 
the appropriate box and send to: John Neill, Legal & General 
Group He., Temple Court, 11 Queen Victoria Street, 

London EC4N4TP... ...... 


Annual G erural Mceti ng 19th May 1982. 

MmberoftheBritishlnsurcmceAssociation 
and Life Offices Association. 



1980 

£m 

29.4 

21.4 

42L2 

34.0 

371.7 

26.8 

19.7 

14.2 

(18.9) 

(15.2) 

19.5 

13.5 

114.3 

85.0 

5,827.1 

5,107.1 




l Q Please contact me 


earnings potential. . 




General^ 

We cover the things you care for 


mm 


of our products. 


Name 


Tel No: 


L 


vrztH 



i 


















24 



1907 198 2 

Mercantile and General Reinsurance 


"We enter the next quartet century 

with confidence." 

MnD.M.C. Donald, Chalcman 


Salient points 

from the Chairman's Statement 


The results for 19S1 reflea the unfavourable 
trading conditions that have faced international 
reinsurers in the General Brandi Although there are 
signs in one or two areas of an improvement in under- 
writing conditions in the longer term, the outlookin 
tire immediate future continues to be amatter of 
considerable concern. 


The continued attraction to underwrite for cash 
flow has meant that competition for premium income 
has continued unabated. The result is that business 
continues to be transacted at rates which are tec hn ical ly 
indefensible and the consequences of this axe to be 
seen in the underwriting results now emerging, not 
only within the U.K. market but in most major 
premium producing countries. 


During this period of underwriting difficulties for 
the General Branch; technical reserves have been 
strengthened and the policy of controlled growth 
continued 


In contrast the life business has continued to 
prosper particularly in tlie United States and South 


Africa. Once again new sums reassured andpremimn 
income are at record levels: 

Disability business has had amore difficult year 
with a sharp increase in the claims experience inmost 
of the major markets. 

Group net premium income has shown an overall 
increase of 2S% to £293 million, whilst Group Profits far 
the year amounted to £5.0 million (I960: £74 million). 

Total free reserves amounted to 49% of net 
General business premium, representinga strongbase 
on which the Company enters its 76th year of activity. 

■We enter the next quarter centurywifh 
confidence and determination to overcome the adverse 
economic and underwriting factors currently affecting 
our business. 

Theproblems of transacting international 
reinsurance grow no less demanding or difficult and in 
1981 the Group had every reason to be grateful for the 
skill and technical expertise of our staff Despite the 
disappointing result our financial position is stronger 
and we are confident of our ability to prosper in the 
years ahead. 


Source of Group Premium Income 

bv Domicile of Ceding Company 



Growth of the Group over the last 25 years 


195b' 

*7000 


19S1 

*7000 


Net premium income by-branch. 
Fire and. Miscellaneous 

7,052 

151,775 

Marine and Avianon 

501 

22,650 

Life and Annuity 

2,295 

94^16 

Continuous Disability 

- 

24,595 


9.84S 

293,336 

Reinsurance Funds 

11.115 

583,547 

Investment Portfolio 

16,527 

574,295 

Shareholders' Funds 

1,130 

41,740 


Copies of the Annual Report 198], containing ihe Chairman's Statemen t in full and a 
Review of Group Operations for the yean are obtainable fcomThe Secretary. 


The Mercantile and General Reinsurance Company pic 

— Head Office: Moorfieids House, Moorfields, London EC2Y 9AL 




Financial Times Tuesday April 27 ^ 


Why Nottingham City 
cannot afford new 




.BY GARETH GRIFFITHS 


. r~ ■ „7_- . ‘ 


SISTER Elizabeth Melbourne is 
worried about the age of the 
beds in Patience Two, a male 
medical ward on the first floor 
of Nottingham's City Hospital. 
Unfortunately there is no 
money for new beds. 

It is not a particularly serious 
problem, although the beds are 
uncomfortable for her longer 
stay patients. Yet in this as in 
much else. City, a reputable but 
not particularly famous teach- 
ing hospital, contains a 
microcosm of the problems 
which Britain's National Health 
Service faces as it contemplates 
yet another major industrial 
relations crisis. 

Nottingham City Hospital, is 
big business, Nationally the 
NHS spends about £20.000 a 
minute in its 2,000 hospitals in 
England, employing • 770,000 
people. Its health administra- 
tors are running concerns 
larger than many major indus- 
trial companies. 

Nottingham's chief nursing 
officer, in charge of nurses at 
16 hospitals, is responsible for 
6,000 nurses, a fifth more than 
the manual workforce of 
Talbot’s UK car manufacturing 
operations. 

City Hospital spends more 
than £20m a year, yet it is con- 
stantly hampered by shortage of 
funds. There is increasing strain 
on the staff as vacancies are 
frozen in line with the Govern- 
ment's aim of reducing man- 
power. 

Planning decisions made in 
the 1960s and early 1970s are 
now coming into effect, although 
circumstances have changed 
radically. And eveiy problem 
is exacerbated by the cuts. For 
the first time since 1951 NHS 
spending is not expanding in 
real terms. 

The solid and reassuring 
names of the acute medical 
wards — Nightingale, Lister. 
Simpson and Harvpy — and 
their cheerful staff make City 
a happy enough place on the 
surface. 

But Mr Christopher Wright, 
tiie sector administrator of the 
City hospitals site and front line 
manager of the hospital, sees a 
different picture on his rounds, 
“ We have pared down most of 
the fat. While we are making 
short-term cuts there . is the 
possibility we are going to com- 
mit long-term suicide.” 

City Hospital has 908 beds, 

. is one of two teaching hospitals 
In Nottingham and wins high 
praise for its medical care. Its 
site encompasses City aud also 
Sherwood, a geriatric hospital 
with 336 beds. Haywood House, 
a cancer relief centre and 
Linden Lodge, a unit for the 
young disabled. Some 4,000 
people work or are patients on 
the 70-acre site. 

The hosoital itself comes 
within the Trent region, one of 
the 14 English health regions. 
Trent covers Nottinghamshire, 
Derbyshire. Lincolnshire. South 
Yorkshire and Leicestershire, In 


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Hugh Rouilodg* 

Nurses at Nottingham City Hospital. 


spite of containing prosperous 
cities such as Nottingham and 
Leicester, the region is the 
most medically deprived in the 
country in terms of facilities, 
medical staff and the general 
health indicators of the popu- 
lation. 

Since 1976 the. Government 
has been paying the region 
extra money to try to improve 
Its facilities, -a recognition of 
the fact that Britain is still a 
profoundly .unequal country in 
the way it provides health care. 

This- reflects itself in regional 
differences in the length of 
waiting list. Doctors tend to 
prefer to live in the more 
pleasant suburbs of the South 
East than in the industrial 
towns of the -North. A DHSS 
report on inequalities in health 
showed that the healthiest part 
of Britain is below a line drawn 
from the Severn to the Wash. 

« The new Nottingham health 
district, which came into exis- 
tence on April 1 as part of NHS 
reorganisation, serves a popula- 
tion of 600.000. The NHS chain 
of command runs from regions 
to districts to individual hos- 
pitals and specialist services 
such as community medical ser- 
vices. 

City Hospital handles most 
types of cases but the hospitals 
on site are gradually reducing 
the number of patients as the 
other Nottingham teaching hos- 
pital, the Queen's Medical 
Centre, comes into full opera- 
tion. The provision of prestige 
hospitals such as Queen's with- 
out the necessary special extra 
funding can drain resources 
from other hospitals to pay for 
the scheme. This happened in 
Liverpool and Cardiff when new 


teaching hospitals came into 
operation. 

Nottingham, Leicester and 
Sheffield, the three teaching 
centres Jn the Trent region, pro- 
vide half the expansion in 
medical n umb ers being trained 
nationally. Such provision, 
Nottingham points out. is for 
the national and not necessarily 
related to local need. 

City Hospital’s teaching status 
has profound implications for 
.both the hospital and the dis- 
trict Medical students cost on 
average £100,000 each to train 
and although the district, gets 
extra funds for the extra costs, 
it does not feel they are enough. 
On the other hand, a teaching 
hospital attracts higher calibre 
doctors for both the hospital 
and the general practitioner 
services. 

City Hospital’s budget is 
dominated by wages, high- 
lighting the fact that nearly 
three-quarters of NHS money 
goes on staff costs. The major 
items of expenditure, accord- 
ing to a 1980-81 survey, were 
nursing services at £7.3 6m and 
medical services at £2.39m. 
Medical supplies accounted for 
£1.37m, pharmacy £l-36m, 
administration £lm, cleaning 
£X.44m, estate management 
such as engineering mainten- 
ance and energy costs £1.74m, 
catering for patients £640,000, 
pottering £422.000 and laundry 
and linen £262,000. 

Even so, Nottingham's costs 
are much lower than the 
average for provincial teaching 
hospitals. A survey for the 
year ended March 31, 1981, the 
latest data available, shows 
City Hospital’s costs to .be' 


£591.05 per pattern p*r>wk, :*■ 
below the provincial- Average - 
of £640.16 and wtil belojr.ibe 
cost per case at Guys 'Hospital . 
in London, at. £$624&:.,'. ^ v 
On the other hand the: per. . ■ 
centage of occupied; beds • at v 
City is low at 77.4 per cent: 
compared to * a, - pruvrodai- 
average of 80.6 per . cent.and 
for Guys 83.3 per cent 
. The Nottingham Area Eealih 
Authority (which wasabblished, 
on April 1 when an entirej§i^ 
of NHS ■ organisation w 
removed) warned Sast year tiiat • 
unless much needed -oapital-ia-^ • 
vestment was possible in vffia'" 
next ten-year planning period, . 
many departments - would "con- 
tinue to operate at' file :CUy > 
hospital “ hi inadequate ftfl&i..- - 
ties for years to come,; to- tbs' 
detriment of *he service hi 
general.” : - o - . ; - r 
More than 80 per cento# the . 
district’s expenditure is. oh has- 
pilal services. ■ Administration 
accounts for 3.7 per cent of Ihe 
total. Financial ■controls ; are 
tight, the district .reqateUans ; * 
the money as it is required and 
monthly reports are sent" in 
from the hospital to £te dis- 
trict and from the district to 
the region. ■ The Government 
thinks they should be tighter ' • 
and has instituted a serifes of 
performance reviews 
The quality of the top manage- 
Trient at City Hospital and the a 
district is impressive. Ironically, 
as the NHS has come under. in-~ 
creased pressure the quality of 
' administrative and-- managerial 
staffs has improved ias' the pro- 
ducts of the NHS graduate train- 
ing scheme,' introduced some 20 
years ago. now rise to iop poo- ' 
Hons throughout the country 
Mr Brian Blissett, the district ,- 
administrator is '*t-. Cambridge 
graduate for example and the i 
author of trenchant papers, an 
the last reorganisation. Mr Eric 
Morgan, the district treasurer is 
a product of JesugOoftege.ifr- • 
ford and Price Waterhouse : 

But to ihe sitifc in Patfimee 
Two and indeed to the vast 
majority of patients in hospital, 
the most important . people; ire 
nurses. Britain's .nurses enjoy a 
particular public sympathy over 
their pay and conditions. They 
are the .largest group in the 
NHS with an eSi&ated ^80,000 
in England alo'neL -^ 

But Mr Ted 'Koimn. the 
National Union; <rf -PhWic Em- 
ployees’ branri^socreilnry says 
that in some « <fie geriatric 
wards at SheSmbd (here is 
insufficient tfaffiiaml unqualified 
nurses are left .«n charge of 
wards. He says^that durmg.the 
past three years .domestic staff 
has been cat back by about a. 
fifth. 

The strain 'on -some -of the 
hospital staff is beginning -to -tell - 
according to both management 
and unions. But as in most of 
; the NHS there is stall a tremen- 
dous -amount of .pride - about, 
“the service anda determina- 
tion to make it work. . 


ANNUAL GENERAL MEETING OF SHAREHOLDERS 


to be held onWednesday 1 9th May, 1 982, at 1 0.30 a.m. 
in the “Nederlands CkHTgresgebouw”, 10 ChurchBl- 
plein, The Hague, The Netherlands. * 


REGISTRATION: 



AGENDA: 

1. ' Annual Report for 1981. 

2. Rnalizationofthe Balance Sheet and the Profit and 
Loss Account together with the Notes thereto for 
1981 and declaration of the dividend for 1981. 

Appointment of two members of the Board Of 
Management 

Appointment of two members of the Supervisory 
Board. 


A. Holders of share certifi ca tes to bearer may attend 
and address the meeting and exercise voting rights if 
their share certificates, or evidence that their certifi-- 
cates are held in open custody by De Nederiandsche 
Bank N.V., are deposited against receipt not tater than 
13th May, 1982, at the bank mentioned beiow, vizj 


N.ML Rothschild & Sons Limited, London. 


3. 


B. Holders of registered shares may attend and Wt-' • 
dress the meeting and exercise voting rights If they •• 
make known to the Company in writing not later than - ' 
1 2th May, 1 982, their desire to do so: 


5. 


6 . 


Proposal to amend the Articles of Association and 
to authorize the Board of Management - in accor- 
dance with the provisions in Article 1 24, Book 2 of 
the Netherlands Civil Code - to make any changes 
considered necessary by the Minister of Justice. 

Designation of the Board of Management as refer- 
red to in Article 4 in the proposed amendments to 
the Articles of Association as the competent body to 
issue shares. 


with respect to shares of The Hague Registry: ' 
at the Company's office at The Hague; - 
with respect to shares of Amsterdam Registry: 
at the office of AJgemene Bank Nederland N.V., 
C.K.E., P.O. Box 2230, Breda, The Netherlands; 
with respect to shares of New York Reffstry: 
at the of free of The Chase Manhattan Bank, NA., 
New York. 



7. 


Designation of the Board of Management as refer- 
red to in Article 4 in the proposed amendments to 
the Articles of Association as the competent body to 
suspend pre-emptive rights when issuing shares. 


8. 


Remuneration of members of the Supervisory 
Board. 


The documents referred to under items 1, 2 and 5 are 
available for inspection and may be obtained by share- 
holders free of charge at toe Company’s office, 30 Carel 
van Bylandtlaan, The Hague, and at the head office of 
N.M. Rothschild & Sons Limited, London. 


C. Holders of certificates far “New York shares*!, 
which are depositary receipts issued pursuant to an 
agreement dated 10th September, 1918, uncter which 
The Chase Manhattan Bank; N A is successor deposi- 
tary, may attend and address toe meeting if their certifi- 
cates for “New York shares”, are. deposited against 
receipt not later than 13th May, 1982, at Algonene 
Bank Nederland N.V., C.K.E., P.O. Box 2230, Breda* 
The Netherlands, or The Chase Manhattan Bank, NA, 
NewYork. 


The nominations for the appointments referred to under 
items 3 and 4 are available for inspection at toe Compa- 
ny’s office. Mr. R.M. Hart and Mr. J.M.H. van Engelsho- 
ven are fisted first on the nominations for appointment 
as members of the Board of Management, and Mr. 
G-J.F. Stijntjes and Mr. J. Kasteei are listed second, 
respectively. Mr. D. de Bruyne and Mr. E von Kuen- 
heim are listed first on the nominations for appointment 
as members of the Supervisory Board, and Mr. J.P, 
Fortuin and Mr. S.H. Kamminga are fisted second, res- 
pectively. 


What is stated above with respeetto tteavaflaiwlrtylbr 
inspection or toe possibility of obtaining toe documents-- 
referred to under items 1 , 2 and 5 of the agenda and the 
nominations for appointments likewise allies to hold- : 

era of certificates for “New York shares*'. 


in accordance with Article 40 of toe Articles of Associa- 
tion a resolution providing for amendment of the Articles 
of Association maybe passed during the General Meet- 
ing of Shareholders by an ordinary majority of votes, 
irrespective of the proportion of the issued capita! which 
is represented thereat 


POWERS OF ATTORNEY; 

Shareholders and holders of certificates for “New Yorfc : 
shares” who wish to have themselves represented at 

the meeting by a proxy must not only comply with what - 
is stated above under A, B and C respectively, but also 
deposit a written power of attorney not later than 
14th May, 1982, at toe Company’s office, 30 Caret van 
Bylandtlaan, The Hague, or at toe head office of N.M: 
Rothschild & Sons Limited, London. 

If desired, toms which as from today are obtainable 
free of charge at the Company’s office and toe head 
office of toe above-mentioned bank may be used for 
this purpose. 


The Hague, 23rd April, 1982 


The Supervisory Board. 


NStKoniuldijlte Nederiandsche Petroleum Maats chappjj 

(Royal Dutch) Established rtThe Hague, The Netheriands 


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Crowther Group losses 
reduced to £270,000 


coronation Ford Motor profits trimmed to £220m 


SALES OF Ford Motor Company operations were £389m (£3Blm). 

NET PROFITS of Lanrbo's rose from £2. 92 bn to £3.07 bn in There was a in increase in working 
Coronation Syndicate of South 1981, including; £1.01 bn to export capital from £54m to £161m. 
Africa for the quarter ended markets, against £957m and The current cost profit beJ 
March 31 reached R96,D00 £2.07bn, compared with £L97bn tax and gearing adjusts: 


SECOND HALF losses at John 
Crowther Croup, woollen textile 
manufacturer, were m»ch lower 
at £43,000. against £916.000, and 
have cut the deficit for the 1981 
year from £912.000 to £270.000 at 
.the taxable level Turnover 
slipped, to £3.66m (£3Bm.>. 

The dividend has been 
omitted, the last payment being 
. 0.76p per share for 1879. 

The directors state, however, 
that the order booh is longer 
'than sc any time In the past two 
■years and tile company is explor- 
ing a number of trading oppor- 

- tunities with a view to producing 
additional operating revenue end 
benefits. 

-. - -The group traded profitably for 
most of the six months to 
December 31, and if trading 
levels continue to improve, the 
group should be in profit for the 
current year, says the board. 

There has been extensive and 
costly development work on new 
fabrics during 1981, all of which 
has been written off in the 

- second belt. The delayed re- 
siting of the company's plant Is 


taking place and development of 
properties is progressing satis- 
factorily, directors state. They 
add that a number of properties 
have been let. 


March 31 readied 3196,000 £2.07bn, ro 
(£52,000). This figure also re- « the UK. 


to 15-20 per cent of group turn- presents the profit for the first 
over. But with no real improve- six moofiis of the financial- year. 

. _LZ7 as first quarter results haw been 

nrent an the marketplace these ^ated at breakeven, 
advances must come from mv,* «Amnnnv nn 


Operating profits' fell from 
£139m to £l30m but net interest 


The current cost profit before 
tax and gearing adjustment 
remained steady at £155 m. 

. For the second successive year 
no 'dividend, will be paid to the 


iarome improved from £85m to p^t ^oup" Ford Motor is a 
Sg wholly-owned subsidiary of Ford 


company received no profit was £220m compared with Motor of the U.S. 


Tufarjft vj-. M ^ Eternal efforts, particularly pro- dividend an the latest quarter £226m, including £2m of dividend 

jnieresr cnarges xor me year ^ development. Though a from Corsyn Consolidated Mines, «»«»*"*■ 


S ra lS2ii?«2S volume producer toe group its^Zl^ahwe gold and copper Tax payment rose from £22m 
began 19S1 with ite fabrics mostly ktbswiiary. to £55m leaving net profits of 


asset sale profit, much lower at 
£56,000 against £300,000. 

ATtw on unchanged tax charge " 
of £5,000 loss per 25p share is 
given as 7.9p (25.7p). 

Oh a CCA basis the pretax 
figure is shown as £341,000 
(£L13m). . 

• comment 

Crowther is beginning to' see the 
fruits of its massive surgery — 
which cut •workforce by 75 per 
cent — and modernisation of the 
past four years. For (the past 
three months its looms have been 
working 24 hours a day 5} days 
a week and volume sales are 
expected to show strong gains 
in the- current year. Also exports I 
are predicted to recover from the -i 
ne^&giMe ieved of two years ago ■ 


Legal & General Group 
funds expand by f 700m 


GROUP funds of Legal and 
General Group rose by more than 
£700m in 1981 to £5.S3bn by the 

■ year-end. Net new investment by 
the group amounted to £300m of 

-which about half was in UK gilts.' 

■ A total of £ 60 m was invested in 
equities, with nearly a third 
overseas. A number of attractive 
opportunities resulted In another 
£S0m being invested in property. 

At the end of 1981. property 
holdings, at £2.02bn accounted 
■for nearly 36 per cent of group 
assets, UK pits at £1.5M>n a 
further 26.7 per cent and 
equities at £Z,Sbn. another 26£ 
per cent. 

As already reported. Legal 
and General the UK’s largest 
pensions company, had record 
new life business in 1981 but saw 
a drop in new pensions business 
because of the recession. The 
attributable profit rose strongly 
by £Sm to £29.4m, despite heavy 
underwriting losses overseas. 


Professor Jim . Ball in bis 
chairman's statement, referred to 
the group's acquisition of the 
UJS. life company Government 
Employees Life Insurance 
(Getico), toe group's first entry 
into the U-S. life insurance 
market The cost of the acquisi- 
tion amounting to US$140m 
(£73m) was financed, by S65m 
from internal resources and $75m 
from a bank loan over 10 years. 

He also referred to the suc- 
cess in its first year -of the 
Insurance Ombudsman Bureau, 
of which Legal and General is 
a member. The Bureau had satis - 1 
fied- a real need for handling in- 
surance complaints from the 
public, but at the same time, had 
shown that the number of un- < 
satisfied complaints was not as -j 
high as doomed by critics. He : 
urged the UK insurance industry 
to move towards a single united I 
scheme for handling consumer , 
complaints. 


BCT Midland at £2.2m 


Net profits of BCT Badland 
Bank amounted to FFr 22.2m 
(£2-2m) for 1981, compared with 
FFr 24.5m for the previous year. 
The group, formerly Basque de 
la Construction et des Travaux 
Publics; was renamed following 
the acquisition by Midland Bank 
of a 68.4 per cent controlling 
interest in June 1979. 

Shareholders' funds stood at 
FFr- 210.7m. against- FFr 38&4m 
for 1980. ■ Total assets fell from 
FFr 8.17tm to FFr S.12bn. 

Net charge for provisions for 
bad and doubtful debts totalled 
FFr 30.1m in 1981, compared 
with FFr 45m. 

- The directors say the bank 
has generated its ability to 
generate new loans at profitable 
margins. There has been a 
further reduction in outsta ndin g 


loans to construction, companies, 
with an increase In lending to 
the multinational sector. 

Sophisticated liability manage: 
ment has reduced the sensitivity 
to interest rate fluctuations, 
while stringent control of 
general expenses resulted in _ a 
decrease in 1981 against costs in 
1980. 

(to the fntare, the customer : 
deposit base will be developed to 
reduce the bank's dependence on I 
the money market and a five- 
year automation plan, whit* is 
already under .way, will further 
improve productivity. 

. The company is quoted on the 
Paris stock exchange. It has its 
head office in Puns and 14 
branches hi the major industrial 
and commercial centres In 
France. 


DRG Canada setback 


DBG Incorporated, the Cana- 
dian quoted subsidiary of DRG, 
reports first quarter 1082’ earn- 
ings of S cents per share, com- 
pared with 32 cents before extra- 
ordinary item in the same period 
last year. Sales were little 
changed at 823.95m ($24_54m). . 

Most of the downturn occurred 
in January-February with a 
modest recovery in March. 
General economic conditions 
were cited as the reason for 
lower earnings. 

Mr Nonnan Morris, president, 
said at the AGM: “Orders on 
the books at the end of March 
will mean that . our . plants will 
be busy. The trend is for custo- 
mers to order smaller quanities 
more frequently.” 

At the end; of March, cash and 
money invested was 81.05m. The 
strong ftnaTipial position is note- 
worthy since in 1981 the company 
expenditures for capital and 
machinery in packaging, enve- 
lope and stationery plants across 
Canada totalled 810.07m, all 
financed from within the com- 
pany, said Mr Morris. 

The commitment to further 
upgrading of equipment con- 


tinues into 1982 with orders 
already placed amounting to 
85.4m. 

Phelps Dodge 
in Turkey 

THE SECOND largest copper 
producer in the U.S., Phelps 
Dodge, is to join forces with 
three Turkish companies to 
evaluate and possibly develop 
the Cayeli copper-zinc deposit in 
north-eastern Turkey. 

Preliminary exploration indi- 
cates a deposit with some 30m 
tonnes of reserves, grading 2.83 
per cent copper and 4JH per 
cent zinc. Phelps Dodge will be 
the operator for the project and 
can earn up to 49 per cent of the 
joint vesture by carrying out 
further exploration ad develop- 
ment. _ . ■ . 

The company prams to spend 
aa estimated 83m over the next 
two years to prove up reserves. 

Phelps Dodge’s partners are 
Etibank, the state-owned n ri wing 
company, and two private com- 
panies, Garda Indus tri and Desnir 
Export. 


BASE LENDING RATES 


ABN. Bank }3 % 

Allied Irish Bank . .... 13 % 
American Express JBk. 13 » 

Amro Bank 13 % 

Henry Ansbacher 13 % 

Arbutbnot L at h am ... 13 % 
Associates Cap. Corp. 13 % 

Banco de Bilbao 13 % 

BCCI 13 % 

Bank Hapoalim BM ... 13 % 
Bank Leumi (UK) pic 13 % 
Bank of Cyprus ......... 13 % 

Bank Street Sec. Ltd. 14 % 

Bank of N-S-W. % 

Banque Beige Ltd. ... 13 % 

Banque du .Rhone et de 

la Tamise SA. J3i% 

Barclays Bank ......... 13 % 

Beneficial Trust Ltd. ... 14 % 

Bremar Holdings Ltd. 14 % 
Brit. Bank of Mid. East 13 % 

i Brown Shipley % 

Canada Permt Trust.. 13*% 
Castle Court Trust Ltd. 131% 
Cavendish G*ty.T*st Ltd. 14 % 

Cayzcr Ltd; 13 % 

Cedar Holdings ....... i. 13 % 

I Charterhouse Japbet.. 13 % 

Choulartons 131% 

Citibank Savings ......fl2|% 

Clydesdale Bank 13 % 

C. E. Coates ■— If % 

Consolidated Credits-. 13 % 
Co-operative Bank *23 % 


Grindlays Bank J13 % 

■ Guinness Mahon 13 % 

■ Hambros Bank 13 % 

Heritable & Gen. Trust 13 % 

■ HUi Samuel §13 % 

C. Hoare & Co tl3 % 

Hongkong & Shanghai 13 % 
Kingsnorth Trust Ltd.' 14 % 
Knowtfey St Co. Ltd. ... 134% 

Lloyds Bank 13 % 

M allinb all Limited ... 13 % 
Edward Manson & Co. 14 % 
Midland Bapk - 13 % 

■ Samuel Montagu 13 % 

■ Morgan Grenfell 13 % 

National 'Westminster 13. % 
Norwich General Trust 13 % 

p. S. Refson * Co- 13 % 

Roxburghe Guarantee 184% 

E, S. Schwab 13 % 

Slavenbnrg's Bank ... 13 % 
Standard Chartered '...1113- % 
Trade Dev. Bank ...... 13 % 

Trustee Savings Bank 13 % 

TCB Ltd. 33 % 

United Bank of Kuwait 13 % 
Whites way Laidlaw ... 134% 

WiDiama * Giya's 13 % 

Wintrust Secs. Ltd. — IS % 
Yorkshire Bank 13 % 

m Member* <U tha Accaptinfl House* 

Ccmmitteft. 

- 7-day dapoalw 10*. 

10-25%. Short term {8,000/12 
month 116%. 


Corinthian Secs. ----- 13 % . , . y deposits on sums 'of: under 

The Cyprus Popular Bk. 13 %- T LTooo iomc. OOlOOO up 1 to 
Duncan Lawrie .13 % £30.000 11%, ®M)00 and over 

Eagil Trust 13 % nW. 

E.T. Trust 13 % * Can deposits CTjJOO end over 

Exeter Trust Ltd. 14 % io%. 

First Nat Fin. Coip.... 1SJ% g- ai-dey deposits ow ri^oo « 
First Nat Secs. Ltd-.. 15i% 5 . D«nemi ’ Wl% * 

Robert Fraser 14 % i Mow* raw raw. 


at the highly competitive lower 
end of the market with few 
running cloths. Today it has 14 
high quality running ckrths. 


Corsyn itself produced a net 
loss in the period of Z861.000 
(£47.000), compared with profits 


£165m agmst £2 04m. 


Tile accounts show there' were 
loans to the parent group of 
£656m outstanding at the year- 
end. Mr Stanley Thomson, the 


The balance sheet as at Decent- UK company's finance director. 


ber 31 shows cash and cash 


Working capital requirements Z$53O,00O. The Joss was due to 
have pushed, borrowings back to the madn mill at the Inyati 


around 70 pm- cent of equity copper mine being unserviceable 
again but higher efficiency for almost the whole period. It 
promises better margins and Q was recommissioned a few days 


in tiie previous three months of investments-down from-£S12m to 
Z3530.000, The toss was due to £135m. - ’ .... . 

the g~rri.ii at the Inyati Bank and other loans slipped 


from £257m to £?26m but 
creditors increased from £732m 
to £993m. 


said yesterday the loans had been 
repayed. 

. Exports from the UK, includ- 
ing sales to overseas subsidiaries, 
were worth £9 19m (££52m). They 
comprised £ll7m (£101m) for 
cars, £11 Sm (£159ml for com- 


for agricultural tractors and small-scale programmes for 
£59tm (£4S2 tp) for components voluntary redundancy and speaal 

and accessories. early retirement. 

Tit n-hoBy^misa T-ord Motor 
consisting of ( SJi2L£5 Credit Company improved pre- 
cars, flin (£Bm) for commercial , j... jg p^r cent to 

vehicles, £6m £13ro. Advances to retail and 

and £411m (£331m) for aeet customers totalled £247m, 

components. up 10 pe r wnr ^ isso, while 

Car production tell fro® advances to dealers remained at 
342.767 to 342,176. including r7Qm 
69.428 (70,659) for export Com- 
mercial vehicle ourput was 86,182 

(1383731, with 35,219 (48,787) BOOKER McCONNELL (inicmaional 
for export Tractor production food. enBinocrino. publismng aroupH- 
was 4LM3 (41,344) of which “ 

36^16 136,977) Was exported. holders' turn** nCT.OGm J£1 06.08m). 

The Bridgend engine plant m (jud assets cBi.«m (cs&.3iri). not 
its first full year Of production, wading assets C147.3fim (risrwm). 

cen J ^ or C^Ppri*. . current liabilities C1923m (E)83.9m). 


36516 136.977) was exported. _ holder!* fund. 

The Bridgend engine plant, in (jxcd a5S „t5 oi 
its first full year of production, trading assets 
produced 3S7.948 C\Tt engines, not borrowings 
63 per cent for export. _ . 5“™"* .JEJS! 


— — — r . current iiaoiuunn i . 

UK employment declined iram MoBlinp< London Chamber or Commerce 
76,000 to '71,000 achieved mainly an a industry, ea Cannon Street. EC. 


return to profit this year. 


before the end of March. 


Total funds -generated from mere Lai vehicles, £93m (£lX0m) by normal turnover aided by May 21. ninoon 


Equity & Law Life Assurance Society pic 


Statement by the Chairman, MrPDJH Cox 


Directors 

Sir John Witt retired as Chairman on 30th April 1977 
afte r 13 years in that position during which the Society 
oreatlv orosoered. His colleaoues on the Board were ' 


counseL sir John will be retiring from the Board at the 
Annual General Meeting, having been a Director for 
over 20 years. His contribution to fce afiairs of the 
Society has been enormous and he will be nnssedvery 
much indeed. 

Mr P R Smith will also be retiring at the Annual General 
Meeting. He was appointed a Director in 1974, He retired 
as Deputy General Manager and Actuary on 28th June 
1971 after 40 years' distinguished service with the 
Society, and we were fortunate in retaining his presence 
on the Board. He leaves with our wannest tributes for 
his guidance over the years. 


Mr CJBrocksom. Chief Actuary, and Mr CHR Wood, an 
Assistant General Manager, should be elected Directors 
of the Society. With their experience of the Society, both, 
axe well equipped to play important parts in shaping its 
future activities and I strongly recommend their 
appointment, which will increase the number of 
executive Directors to four. 

New Business 

lam very pleased to be able to report that despite ihe 
recession which is seriously affecting each of the three 
countries in which we operate - the united Kingdom , 
Holland and Gennany-our new business in 1981 shows 
an other substantial increase. The figures (for the Society 
and the Managed Fund compan y together ) over the last 


1977 — 14.4 15.3 778 

1978 — 19.3 29.8* ' 896 

1979 — 16.8 27.8* ' 901 

1980 . — 21.5 22.1 1,129 

29S1 — 25.1 27.6 1,417 

^Including £14m and £9m in 1978 and 1979 respectively 
from speoal issues of guaranteed bonds. 

United Kingdom 

Our new business success owes much to the substantial 
efforts we have devoted to introducing new contracts 
and revising existing ones as well as to other aspects of 
marketing. - • 

We have continued to develop our range of products for 
individual policies both conventional and unit-linked. In 
the autumn we launched five new unit trusts to which 
■ savings policies fian-be linked and this has contributed 
to the substantial increase in single premiums ; we no w 
offer both specialised and general funds to which all our 
forms of unit-linked contracts can be linked. 

New annual premiums for individual business in the 
United Kingdom last year were £13.7m, 33% higher than 
in 1980 (and 61% higher than, in 1979). Half of this was in. 


Animal 

Single 

Sums 

Premiums 

Premiums 

Assured 

frp 

£m 

£m ' 

14.4 

15.3 

778 

19.3 

29.8* 

896 

16.8 

27.8* ' 

901 

21.5 

22.1 

1,129 

25. Z 

27.8 

1,417 


Individual single premiums increased. irom£S:ftcn to 
£14.6m. 

New annual premiums for increments to ensiing group 
schemes were nearly up to the very high level of 1 980, 
despite the effects of the recession oh employment, but it 
was hard, to find new schemes. Total premium income in 
toe Society has been influenced by the switches of 
several large insured schemes to our Managed Fund 
company, where the total funds managed under group 
policies amounted at the end of the year to about £140in* 
an increase of 40% during the year. 

The new contractbased on deposit adnunfstratian 1 which 
we introduced last summer for smaller group schemes 
las produced a good flow of enguiries but completion 
of business following such enquiries always takes time. 
Nonetheless 1 am confident that this new contract will 
make a significant contribution to our new business in 
1982. 


Ifenyear record 
(EmiUion) 






v'v : 


-i 

:rt •• • L • •t:- ^A-,- .-rlv l-. • 

1922 1923 1974 1975 1976 1977 1918 1979 1980 1981 


Animal premiums 

ff&Sgl Payrr naY>tg urvfer j mlTrnftfl and anT Tmtipg 


Highlights of the Year 


1S8I 1980 

£ million. £ million 


New Sums Assured 
New Annual Premiums 
Total Premium In come - 
Payments to Policyholders 
Group Net Assets 
Investment Reserve -••• 
Dividend for the Year (per share) 


•ffollnwrf 

In Holland toe total new business written in the market in 
1981 was well below the previous year's volume and 
competition was therefore fierce. Despite this new 
annual premiums for the Society were 9% np (in local 
currency) which is a very satisfactory result. Towards 
toe end of the year ^ weMrbduced aimit-linked contract 
in Holland which has been very well received ; this is an 
innovation in the market in Holland and we look; forward, 
to agood volume of business from it. 


Germany 

W-e have-strengthened our position in the relatively 
small broker market in Germany by widening our range 
of contracts on attractive terms and business from these 
sources is now a significantpart of our totalnew business 
there alongside that from toe longer established source, 
our subsidiary company offering vtide range of 
financial services. New annual premiums in Germany 
last year were £Q.7mand net new sums assnied£44m- 
up 74% and 134% respectively. 

Assets 

Of the total of £94m invested last y^r,£34m was in 
respect of unit-linked policies which reflects the 
growing importance of this business. Unit-linked funds 
are now filBOm, 14% of our total invested assets. 

£1 6m was invested in Holland and Germany against our 
liabilities under policies issued in those countries and 
much of the balance of £44m was invested overseas, 
taking advantage of the strength of sterling, including 
£20min Japanese and £5m in North American equities 
(including convertibles) and£4$m in properties in 
Europe. In addition£25mwasusedto repay the last of 
the loans which toe Society had taken to finance equity 
investment overseas. 

The total investment income rose from £8 1m to £94mand 
the value of the invested assets appreciated by £27m. 

Liabilities 

The value of the Sodety’sliabilHiesai31stDecember 
1981 was £9 80m, £72mmore than a year previously. A 
number of changes have been made to the valuation 
basis, the combined effect of which was to reduce the 
‘ value of the liabilities by £8m. The investment reserve 
was increased by £ 1 5m to £1 23m and the margin between 
the average rate of interest usedin toe valuation and toe 
estimated runningyield on toe assets was 1.1%, 
compared with 0.9% a year previously. 

Regulations have now been published prescribing a 
statutory minimum basis for valuing liabilities and these 
will apply at the valuations at toe end of 1982 of the 
Society and the Managed Fund company. In addition 
regulations have been made providing for a solvency 
margin, as required by EEC legislation. Apart from tha 
additional work involved, I am confident that these 
regulations will presentno problems for us. 

Dividend 

Earnings in toe Other Business Fond (excluding 
depreciation ofassefa) were £2,978,000, 14.8p per share, 
compared with £2,492,000, 12.4p per share, for 1980. A 
final dividend of 10.5p per share is recommended 
■making with the interim dividend of 4.Sp already paida 
total of 15p, 15% higher than the total of !3p for 1980. 

The shareholders' allocation of distributed surplus was 
£2,737,000, an increase of £511,000 over toe previous 


■U29 

1147 

1032 

M 892 896 901 - v 


80S ^ ^ rm 

sstesftVSsSSf® 

tin y»\- 


^ 

r-j’s.-* ,»j * 001 ! 

Qlo ! 

. „SV.V : v . ,v*' 


yjt ». i| 

j 353 [Ss H 378 

5 262 


1922 1973 1974 1925 1976 12Z7 1978 1979 1980 1981 


ted Newsamsassnied 
1 — I Basinet 


year's allocation. Of this increase, £273,000 arose 
because of increased rates of terminal, retirement and 
vesting bonuses payable from 1 st January 19S1 ; the 
changes in the valuation basis resulted in a reduction of 
£12.000. Other net earnings were £25,000 lower at 
£241,000, mainly because 01 lower interest rates on 
deposits. 

Special Business 

Three resolutions are to be put forward at toe Annual 
General Meeting ; they are explained in toe letter to 
shareholders. 

The first concerns a share option scheme for members 
of the staff. This scheme has been designed to take 
advantage of the provisions introduced in the Finance 
Act 1980 under which a Save-As-Y ou~Eam arrangement 
can be used with taxation benefits to the employee to 
purchase shares in his company. As will be seen the 
maximum number of shares in total which canbe issued 
under this sch erne is about 4% of the total number in 
issue so any dilution of toe present shareholders* 
interests is minimal. 

The second makesanumber of alterations totoe 
Memorandum and Articles of toe Society. Most of these 
are merely by way of bringing the provisions up to date 
but I draw shareholders' attention to the proposal to 
remove the requirement that a Director should hold 
1,000 shares imthe Society, which is considered to be no 
longer appropriate in modern conditions. 

The third proposal is to increase toe fees for non- 
executive Directors by 25%, whichis broadly inline 
with inflation since the foes were fixed atfoeir present 
levels two years ago. 

I reco mmend shareholders to support each of these 
resolutions. 

Contracting -Out 

In announcing the revised terms, applicable from April 
1983, for contributions to toe State pension scheme for 
contracted-out employees, the Secretary of State for 
Social Services commented that he had tried to strike a 
fair balance between the treatment of contracted-out 
employees and their employers and of those who 
participate fully in the State scheme. I applaud Ins 
concern to maintain stability in the partnership, 
established by a Labour Government, between foe 
State and occupational schemes ; the assumption of this 
stability was the basis on which many employers, after 
due consultation, with their employees, made their 
. decision to contract out 

Administration, 

Expenses of mana gemen t in creased £rom£25.3m to 
£32. 3m. Inflation, exchange rate differences and 
expansion of our operations, particularly in Germany, 
■account for a substantial part of this increase. In any year 
the expenses include a number of non-recurring items 
but last year the total amount of such items was 


where the number of staff is now less than 80. compared 
with 200 a year ago. Substantial savings in r unnin g costs 


involved in making the moves. It was regrettable that a 
number of experienced members cf our staff in London 
were unable to transfer for personal reasons and I 
would like to pay a tribute to all those who did not move 
for the loyal way in which they continued, to give of their 
best until the actual transfers of work were made. The 
other side of this coin is that we were able to take on 50 
well-qualified school leavers in Coventry where 
unemployment amongst youngsters is high. 

Ouflbofc 

1981 was a good year for Equity fi.-Law, andlam 
confident that 1982 will be another. As toe figures show 
opposition is strong. Our in vestment performance has, 
for many years, been outstanding and this is reflected 
both in the bonuses being paid on maturing with-profit 
policies and in the record of our unit-linked funds. In. 
each, country in which we write business we have a wide 
range of up-to-date contracts which are kept under 


excellent standard of service and to employ sales forces 
■which can provide a high level of technical advice. I 
believe therefore that Equity & law's future prospects 
are excellent. 


In expressing zny confidence in the Socaeiy J sfhtoreX 
have much in mind the hard work and dedication of to© 
staffat all head offices and branches during this past year 
on which. I know we can continue to rely -and, indeed, 
witoout which toe excellence of the Society's service 
could not be adequately maintained. My colleagues join 
me in thanking the whole staff most sincerely. We are 

»- T 1 - a. « - 


Copies of the Report end Accounts can be 
obtained from the Secretary, 

20 tincoin's Inn Fields, London WCSA 3ES 



Equity i Law 






26 


Companies and Markets 


COMMODITIES AND AGRICULTURE 


Fmancial jimes jSiesday April 27 19S& % v - 


Colorado 

beetle 


fears grow 


*y Our Commodities Staff 
CONCERN OVER the possi- 
bility of British crops becoming 
infested with Colorado beetles 
deepened yesterday when five 
more beetles were found in a 
batch of Italian spinach at 
Bradford wholesale market 

They brought the total num- 
ber found this month to 29 — 
most of them on Italian pro- 
duce. A Ministry of Agriculture 
official said this was way above 
the normal level of discoveries 
which averages about one a 
month. 

The latest discovery was 
particularly worrying as it came 
from a split . consignment 
Ministry inspectors were yester- 
day trying to trace other 
batches which went to the Hull 
and Coventry markets. 

The public has been urged to 
watch for these highly destruc- 
tive insects, which are striped 
black and yellow and are about 
half an inch long. 

The National Farmers Union 
is to call for a tightening up of 
inspection procedures of 
Italian farm produce. 

The union is sending a letter 
to the Ministry of Agriculture 
expressing concern over the 
latest incident. 

“Produce is supposed to be 
thoroughly inspected In the 
country of origin, obviously 
something is wrong and they 
aren't doing the job as well as 
they could." the NFU said. 

Hie beetles, which breed 
rapidly once established, pose a 
major threat to crops, especially 
potatoes. 

The Ministry of Agriculture 
said the two consignments in 
Hull and Coventry had now 
been located and would be 
destroyed. 


Metals fail to hold 


Falklands crisis gains 


BY RICHARD MOONEY 


BASE METALS prices opened 
stronger on the London Metal 
Exchange yesterday encouraged 
by the news that Britain had 
retaken South Georgia. Copper, 
lead and zinc prices were nearly 
£7 a tonne higher while three- 
months delivery aluminium 
gained £5.25. But the advances 
proved short-lived. 

Although the copper market's 
strength bad also been aided by 
continuing: labour problems in 
Peru* U.S. production cuts and 
the unresolved Noranda pay 
talks , by midday the rise had 
been halved and at the close 
cash high grade metal was down 
£2.75 at £870.75 a tonne. 


140 


'(HM Tomes 


LME 

COPPER 

STOCKS 



100 ! 


* M J J 1981° * ° J 19ft? A 


Threat to U.S. 


wool shipments 

WASHINGTON — Contamin- 
ation of UB. wools continues to 
plague the domestic sheep 
industry, according to the 
American Sheep Producers 
Council (ASPC). 

Mr Edgar Olson, chairman 
of the ASPC wool committee, 
said one of the largest users 
of U.S. wool has already issued 
an ultimatum that if polyester 
twine is found in wool ship- 
ments. the shipment will be 
rejected. 


The fall may have been 
influenced by another rise in 
LME warehouse copper stocks 
which provided a timely 
reminder of the slackness of 
demand for the metal. The 
stocks total rose 1,100 tonnes to 
135,100 — the highest level since 
December 1979. 

In Toronto, Noranda mines 
reported that a threatened 
strike due to begin on Sunday, 
had been averted but that no 
agreement had been reached 
on workers contracts although 
talks continued over the week- 


end. Meanwhile, in Denver, 
Anaconda Minerals announced 
that it had closed its Berkeley 
open pit copper mine at Butte, 
Montana, because of depressed 
market conditions. But with the 
East Pit mine continuing in 
operation Butte production Is 
expected to remain' at 42,000 
short tons of' ore a day. 


Lead and zinc prices followed 
the trend in copper and cash 
lead ended £2.25 up at £330.50 
while cash zinc closed with a 


net gain of £L50 at £429.50 a 
tonne. LME warehouse stocks 
of lead rose 25 tonnes to $3,975 
tonnes but zinc, stocks were 
down 700 tonnes to 60.550 
tonnes. 

Tin prices were again de- 
pressed following a heavy fall 
in Penang overnight, though 
this was reported to be mainly 
due to ODmunications difficul- 
ties. But buffer stock buying 
cushioned the fall and cash 
metal ended only £35 down at 
£7.090 a tonne. Dealers said 
trading remained thin as the 
result of the current Inters 
national Tin Council meeting 
on proposed cuts in export 
quotas was awaited. 

LME tin stocks fell 650 
tonnes last week to. 38,145 
tonnes. 

Aluminium was among the 
metals to rise in early trading 
in spite of a sharp 12.250 tonnes 
rise in LME stocks to 220,325 
tonnes. But by the close the 
cash price was £2- down on the 
day at £560 a tonne. 

Other stocks changes last 
week were a rise of 470,000 
troy ounces to 33.84m for silver 
and one of 696 tonnes to 2,886 
far nickeL 


Gloom in the pig market 


BY JOHN CHERRJNGTON, AGRICULTURE CORRESPONDENT 


UNTIL tfie la/ - rew weeks the 
pig market was in a mildly 
euphoric state. Not that prices 
were particularly high but 
margins were such that efficient 
farmers could show a reasonable 
return. 

Since then a number of 
factors have combined to 
dissipate Che euphoria. The 
market for both pork and bacon 
pigs has been falling signific- 
antly and the wholesale market 
for bacon has been suffering 
some quite heavy reductions. 
There has been discounting as 
well. 

For this the scapegoat has 
been Denmark where foot and 
mouth disease on the island of 
Funen has been blamed for an 
increase in imports to this 
country. This is because the 
outbreak led the Japanese and 


certain other customers for 
Danish pig meat to close their 
markets for health reasons. 

Ess-Food, the Danish im- 
porters to this country, deny 
this, and produce figures to 
show that imports of pigmeat, 
both pork and bacon, 'are 
actually less than for the same 
period last year. In fact the 
Ess-Food spokesman blamed the 
British for bacon discounting 
and the British in turn blame 
the Dutch for sending rather 
more bacon. 

'What seems to be happening 
is a gradual lessening of confi- 
dence among processors and 
wholesalers of both pork and 
bacon, based on no better 
information than rumour and 
the well known fact that rising 
markets eventually go into 
reverse. 


This has led to a certain 
amount of destocking in the 
anticipation that the Danes will 
eventually have to send extra 
supplies here as there are few 
other markets open to them 
until complete clearance from 
the • disease has been estab- 
lished. 

There is provision for private 
storage aids under the EEC 
rules but these are not as 
favourable to the processors as 
are the intervention arrange- 
ments for beef which take the 
meat off the market and in 
the end export it if necessary. 

In this connection the export 
outlets for any EEC pig meat 
look bleak as EEC pigmeat 
prices are now the world's 
highest and the U.S* has some 
of the lowest and a disease free 
status as well. 


Sharp 
upturn 
in cocoa 


By Our Commodities Staff 

COCOA VALUES moved up 
sharply on the London futures 
market yesterday with the 
May position— -which was £70 
up at one point — ending the 
day £52 higher at £978.50 a 
tonne. 

The price opened around 
£30 higher based on follow- 
through buying encouraged 
by sharp late gains in- New 
York on Friday and concern 
over the Falklands crisis, It 
quickly breached the £40 
permissible limit and trading 
was halted only for the rise 
to continue nwahpt «i after 

the mandatory 15-minute 
break. 


• Market sentiment was also 
aided by rumours that the 
International Cocoa Organisa- 
tion’s buffer stock manager 
had at last been granted the 
expected Brazilian bank loan 
enabling him to extend his 
support purchases by up to 
35,000 tonnes. He has already 
bought 100,000 tonnes in a 
vain attempt to shore up 
prices. Final signing of the 
loan documents will not be 
possible until Hay 7. however. 

The late fall in prices re- 
sulted from profit-taking sales 
triggered by reports of 
Brazilian sales to the U.S. 


Poland imports 
more meat 


BONN— Polish meat imports 
quadrupled in 1981 to 241.000 
tonnes from 58,000 in 1980, the 
East Bloc Agricultural News- 
letter said. 

The newsletter, quoting meat 
industry figures published in 
the Warsaw newspaper Polityka, 
said that meat exports were 
halved over the same period, 
totalling 108,000 tonnes in 1981 
after 215,000 in 1980. 

There has been pressure with- 
in Poland to halt meat exports 
while supply problems continue, 
but the newspaper said these 
figures show that an export stop 
would only provide 30 grammes 
more meat per person ‘per 
month. 

Reuter 


AUSTRALIA 

• • 


• * 


Rising costs 




BY MICHAH. 1HOMPSONNOH. IN SYDNEY 


THE VALUE of Australia's 
rural exports this, season is 
estimated at A$7.4bn (£4.43bn). 
But in real terms, the agricul- 
tural sector is likely to see its 
worst export performance in a 
decade. 

These are among the latest 
forecasts of the Bureau of Agri- 
cultural Economics in Can- 
berra, which says that the gross 
value of the country’s rural 
production . in • 1981^82. ' is 
expected to be A$12.05bn, 6 per 
cent up on the previous year. 

However, given rising farm 
costs. continuing inflation. 


yean According to the BAE: estimated for 1980-81; due. to r 
“There has been little move- the decline in sheep 8lsu$btej* 
meat in .Australian wheat ex- and prices. Shipments "of Jfa 
port prices- A general down- sheep . to Saudi- Arabia, 
ward . trend in ■ world wheat, expected to increase substsnfi- 8 
prices has been tempered in ally, but this will be-morettan 11 
Australia by- a nominal -depre- offset by declining trade with '* 
ciation of about 7 per cent in Iran. ... 

the value of the Australian doi- dairy products, &e : gtoss\ 


lar relative to tlie-UeS* dollar -value -of production in. t 

einAA tha ViDtrmnin EX rtf thA . . a . «r ■- 


since the be ginning of the ^ put a t A?859m, an &cre*se\j 


year. •, ■■ 

The area sown to coarse, 
grains in 1981-82 is estimated 
at 4£m hectares, and -produc- 
tion at '6.4m tonnes, about 23 
per cent up on last year’s crop. 
Coarse grain exports are ex- 


decline by 13 per cent. 


3m tonnes, worth A$461m. 

The value of the wool- dip is 
expected to rise approximately 
in line with auction prices, to 
around A$1.74bn. Australian 
wool production, in 1981-82 is 
estimated at 691 kilos greasy; 

Exports are expected to fall 11 
per cent to 615 kilos greasy. 

Cattle numbers at March 3.1 
1982 were estimated at 24.3m. 

Gross value of beef and veal 
production in 1981-82 is esti- 
mated at A$L85bn, a 12 per 

cent fall in 1980*1. The 

per cent, the real net value of estimated gross value of exports, year yields)', and citrus, 
rural production would be 13 •- ‘** Q,0 ~* — J — ~ J - 


The decline would have been 
more marked but for above- 
average seasonal conditions 
boosting crop production to 
near record levels, the bureau 
said. 

It said that gross returns are 
expected to rise by 6 per cent, 
to A$l2.05bn. But with farm 
costs expected to rise by around 
11 per cent, the bureau says the 
net value of rural production is 
estimated at A$3.95bu. Assum- 
ing a rate of inflation of 10.5 


of 15 per cent on .fte previous 
year;- -The ■ main . fe6uus£ 
responsible are strengthening 
export Prices, and' higher 
domestic prices. .. Wbolemilk 
production 1 is estimated at 
543bn litres. Butter production 
is expected to be. - 8 per! cent 
down, but cheese production 8 
per cent up. ‘ - - :>"- 

Australian sugar production 
in 1981-82 is estimated at 3.43m 1 
tonnes, an increase' of 3 per cent 3 
on last year. But exports' are' 
expected to decline to A$740m, 1 
some 30 per cent less than last'- 
year’s record A$1.06bu; y-'s 

Total Australian ■fruit'prddnd- L 
lion is estimated at 2.Q9ur 
tonnes, Worth .. A$524m. 
increased grape production will • 
be offset by lower output of' ' 
apples and pears (due to -* off " 


per cent lower in 1981-82 than 
in 1980-81, the bureau said. 

The worsening economic situa- 
tion in the U.S. and Japan, as 
-well as in Australia, meant that 
the “ subdued outlook *’ would 
extend beyond the end of the 
current year. 

Australian wheat growers 
benefited most from improved 
seasonal conditions. Their 1981- 
82 harvest is expected to pro- 
duce 16.35m tonnes, worth 
AS2.53bru However, unit export 
returns for wheat in 1981-82 are 
expected to decline by about 6 
per cent, to A$155 per tonne. 

The main forecasts are that 
low-heat harvest should reach 
16.35m tonnes, from a record 
area sown of 12m hectares. This 
is 5.5m .tonnes above the 
drought-depressed level of 1980- 
1981, and the second largest 
Australian wheat crop : yet 
Gross value of the 1981-82 crop 
is estimated at A$2.53bn, or 
50 per cent higher than last 


in the current year is A$918m, Rains and floods.- in soiiie - 
a 14 per cent fall. - areas in March hare affected- 

The gross value of sheep and the quality of some cotton crops. • 
lambs- slaughtered, including But a 25 per cent increase in’ 
the value of live sheep plantings should lift output by 
exported, is estimated at 16 ‘ per cent, to an '. .estimated ' 
A$590m, 14.7 per cent below the . 115 kilos, worth A$165m. . - . ' 


U.S. talks on sugar quotasi 


BY NANCY DONNE IN WASHINGTON 

It is thought that a global : 


WITH sugar prices continuing 
to fall, Mr John Block, the 
U.S. Secretary of Agriculture, 
was scheduled to discuss 
import quotas with a group 
of cabinet officials yesterday 
who could then issue a final 
decision on the proposed im- 
position of limits. 

* Officials meeting within the-. 
Department of Agriculture 
have been debating whether to 
establish one global quota or 
whether to Impose sugar 
import limi t* on a nation-by- 
nation basis. 


quota would be set aLdboot 
2.8m tonnes, but - the figure 
would be a flexible one to 
allow . for .changes in , the 
world price. The US. has 
plenty of sugar .in stocks, 
having Imported 5Jm louses 
last year hefere .the .sugar 
price suppmct^.tprognmme 
went into effedb-^'y \ 

Sugar prisfikiiave been fall- 
ing rapidly, jafoag - with the 
prires of othecsoft commodi- 
ties. . ’ '. 7;^'.-;'. •.;• 



c s> ...• 

s 

1‘ I. 


; ■ 


-- _ ■ y. 



. - r> 
y,j£ 


. ► 


j 




Lean 


■ 

.• x . 


BRITISH COMMODITY MARKETS 

BASE METALS 


GOLD MARKETS 




base-metal prices closed weir 

below the day's highs on the London 
Metal Exchange.' as initial heavy short 
covering, followed the fighting in the 
south Atlantic over the weekend, was 
followed by profit-taking. Copper 
touched £910 prior to cloaing at 
£902.75. Lead was finally £343.5, 
after £348. Zinc £430.5. after £434.5. 
Aluminium £583.25 and Nickel £3.087.5. 
Tin dropped to £7.308 in early after- 
noon trading, reflecting the sharp 
decline in Penang overnight, but 
ralhed to close at £7,325 following 
support buying by the buffer stock 
manager. 


I a.ml ; +"or. p.m." r + or 

LEAD | Official I — ^Unofficial -f 


I £ £ £ £ 

Cash 330-.5 -+5.5, 33Q-1 1+2.25 

3 months 343.75-4 .+5.12- 343.54 1+2.5 


SILVER 

Bullion 

'+ or L.M.E. + or 

per 

fixing 

; - 1 p.m. ! - 

troy oz. 

price 

! j Unoffic’i; 


Settlem't. 330.5 ! + 5JB> - 

U.S. Spot! _ I ■26-30 J_... 


4I1.75p-+UB 

426.25^+1.25 


: a.m. + or. plm. ,+ or 
ZINC I Official ; - !Unofficial| — f 


. £ I £ I £ | £ 

Cash i 433-4 +7.75 1 429-30 1 + 1.5 

3 months; 433.54 ; + 6 | 430-.5 . + 1.5 

S'ment.J 434 +8 - I*. 

PrimWtil - ' *35 I 


Spot I418.30P I+11.S 

3 monttlS.j45X.90p + 12.1 

6 months.|445.40p j+12.1 — i 

lgmonth«475.50p !+1S.H| - I 

LME— Turnover 113 (B5) lots ol 
10.000 oz. Morning: Three months 
431.5. 31.7. 32.0. 32.2. 32.0. Kerb: 

Untraded. Afternoon: Three months 

423. 23.5. 24. 24.5. 24.7. 26. 25.5. 
Kerb: Three months 425.5, 24.5, Z3.5. 



a.m. ■+ or 

p-m. 

+ or 

COPPER 

Official | - 

Unofficial 

— t 

1 £ ] fi 

£ 

£ 





Cash.. 

878- .5 -+&.71 

B70.5-I 

-2.16 

3 mthe 

B06-.5 [+5.5 

900,5-1 

—2^ 

Settlem't 

876.5 [+5.5 




Cathode* 

. 1 _ 



Cam 

871-8 |+5 

865-6 

— 3 


901-.5 l+fi.751 

895-.S 

— 2.6 

Settlem't 

872 +5 

— « 


U^. Prod. 

— 1 — 

•74J 







a m. +or 

p.m. 

+ or 

TIN 

Official - 

-Unofficial 


High Grade £ [ £ 

£ 

£ 

Cash 

7120-5 +72.5 7085-95 

-36 

3 nwnfba 

7340-50 + 86 

7310-5 

-SO 


7125 +70 




Standard 




Cash ; 

7120-6 +72.5 7085-95 

-35 

3 months 

7335-40 +85 

7310-5 

-40 


7125 +70 

— 


Straits E.' 

;02B.OQ —0.82. 



Alumlnm I a.m. j+ or: p.m. !+ or 
I Official I — | Unofficial!.— t 


COCOA 


spot—....: 

562.54,4 + 5 1559.5 6D.6’— 2 

3 months! 

585.56 +6 1 582.5-3 , 

1 1 ! 

— 1 

NICKEL ! 

1 ; 

a.m. '+ or p.m. 1 

1+ or 


Official | — Unofficial 


Spot 

1 

3050-5 LlB ' 3015-25 

'-50 

3 months 

3114-6 2.5 308S60 | 

—40 


Futures rallied sharply against the 
New York close as trade and com- 
mission house short- Cove ring triggered 
a chain of stop-loss buying orders. 
The gains were pared by hedging of 
Brazilian sales but renewed support 
caused a firm close, reports Gill end 
Duffus. 


and Mar no trades. Sales: 73 lots ol 
100 tonnes. 

LONDON GRAINS— Wheat: U.S. Deck 
Northern Spring No 1 14 per cent 
May 25/JunS 10 116.75. June 116. 
July 115.5 transhipment East Coast 
sellers.- English Feed fob May 
122.50 East Coast seller. Maize: 
French second hall April 135.50 tran- 
shipment East Coast ssflar. S. African 
Wftite/YeUow M*y/Jur>e 90.50 seller. 
Barley: English Feed fob May 118 paid 
East Coast 1-18.50 seMer. Beet un- 
quoted. 

HGCA — Locational ex-term spot 
prices. Other milling wheat: Essncg 

118.03. Feed barley: Eastern 110.CO. 
E. Mid 3 111.CC. N. East 1C9.G0. Scotland 

114.03. Tha UK Monetary Coefficient 
for the week beginning Monday May 3 
(based on HGCA calculations using 
four days exchange rataa) >s expected 
to remain unchanged. 


COTTON 


LIVERPOOL — Spot and shipment 
safes amounted to 218 tonnes. Despite 
the troubled international situation 
many customers were anxious to main- 
tain supplies. Interest was shown In 
numeepus varieties. with Middle 
Eastern and North American qualities 
predominating. 


PRICE CHANGES 

In tonnes unless otherwise stated. 


WOOL FUTURES 


■YesTday'a: + or ] Business 
COCOA | Close j — | Done 


900-80 

978-79 


SILVER 


April - 

May 

July _J 1018-19 

Sept ' 105152 

Dec .; 

March 

May i 

JUly 


+39.51 
+52JJ 
+56.0, 
+ 58.0; 
1090-91 , + 55.0. 
1119-20 i+54.0, 
1136-40 +52.5 
1156-59 .+47.5' 


996-46 

1033-983 

1063-14 

1102-54 

1123-84 

1125-02 


RUBBER 

The Londbn physical market opened 
-slightly steadier, attracted very little 
interest . through the day and dosed 
auiet- Lewis and Past recorded e May 
fob price for No. 1 RSS in Kuela 
Lumpur of 209.0 (206.5) cents a kg 
and SMR 20 181.0 (179.0) . 


BRADFORD — Prices were unchanged, 
and chore was a notable lack of new 
buainess. The domestic trade is stiff 
depressed. Some uncertainly is noted 
over supplies if tbs current mter- 
nsuonaf crisis '« prolonged. 

LONDON NEW ZEALAND CROSS- 
BREDS — Close (w order buyer, seller, 
businesa). New Zeeland cents per kg. 
May 389. 3S2. 392; Aug 4CB, 412. *17- 
412. Oct 414. 418. 420. 419: Dec 414. 
420, 422; Jan 414. 421. <26420; Mar 
419. 428. 430-423: May 42S. 439. 440- 
438: Aug 445, 448. 449-447: Oct 445, 
455. 452-451. SrHaa: 59. 



+ or 


-2.76 

1-2.3 


Metals 

Aluminium ...,_p810/815 ._ — _| 

Free Mkt |»985n075! 

Copper-.....-.-. , 

Cash h grade.. .(£870.75 

3 mtiis— 1*900.75 

Cash Cathode- (£863. 5 

3 rathe [£885.25 [-2.5 

Gold troy oz — 8355.26 
Lead Cash...*. '£330.5 
3 mthS...— u .T£343.75 
Nickel _j£3 9 2 6 


11*3! 


Frea mkt 845/276d ,260/28Oc 


Platin' mtr oz’y£280 
Froemkt. — .*192.60 , 
Quioksilvert —'8365/375 
Silver troy az._f418.30p 


Smths. 431.0Op 1+12.16 405. 50p 


TEA AUCTION 


Tin Cash J£7090 

3 mthS—. — >7312.5 
Tungsten 2S.0 lb|S 114.29 


+2J6 
+ 2.86 1 
+2.5 


Month 

ago 


[£810/816 

88S0/IOM 


£829.75 

[£85725 

(£826.5 

£853.75 

3319 

£32925 

£339.75 


[23824 


£250 

+2.2 [il70J 


Gold rose $2} an ounce from 
Fridays close in the London 
bullion market yesterday to finish 
at $3543-355?. This was’ around 
its worst level ot the day, haring 
opened at $364-3643, and was 
prompted by profit taking after 
the recent sharp rise. 

In Frankfort the 12 J iilo bar 
was fired at DM 27,655 per kilo 
($363.01 per ounce) against 
DM 26,840 ($348.02) on Friday 
and closed at $3563-357?. 

In Paris the 121 kfie bar was 
fixed at FFr 71,700 per kilo 
($360.02 per ounce) in the after- 
noon compared with FFr 71,700 
($360.56) in (he morning and 


FFr 69,590 ($345.67) to Friday 
afternoon. . -• 

I D Luxembourg the dollar; per^ 
onaefc equivalent eTthe 12} -kilo- 
bar was $362.50 at 4he &dng.'-i 
In Zorich gold dosed $35fc r 
$359. • 

LONDON FUTURES ^ r 


Month 


[Yesmiatfsi+br 


olpso 


Busiimss 


Don* 


£ per troy 
, ounce J 

August 207.45-7 JH)! +1.20 ;-.21fJMW.7B 

Sept mb' r 209.454^0;+ 1^5 > 21S.B0-IB.K) 
October.:.' 2IUo;tJMt+l.40 
November 218.6M JD . - L^1ȣD-15J5 
Turnover:. 1,153 


tray ouncu: 


(1^04) tots of 100- 


£170^5 
-5 ,'6385/536 

+ 1 1-5] 392 30 p 


-35 

—40 


326 
7242.5 
1312435 


New York . — . 

" Cents per pound, t MS per 
t On previous, official dose. 


kilo. 


Silver was fixed 11 .So on ounce 
higher lor spot delivery in die London 
bufkon merket yeeierday at .418 3 d. 
U.S. cent equivalents of the fixing 
levels were: spot 739.1c. up 18.6c: 
three-month 765.2c. up 19e: six-month 
791.0c, up 18.5; and 12-mo rwh 843 Cc. 
up 18.7c. The menf opened et 422p- 


Sales: 4.757 (3.Z76) lots of 100 
tonnes- 

ICCO — Daily pnee fob April 
(76.88). Indicator price for 
73 C8 {78.73). 


No. 1 ; Yest'r’ys | Previous i Business 
RJ3.S. ; close close i -Dona 


23: 78.26 
April 26: 


COFFEE 


425p (747-751c) end oloeed et 439p- 
““ (7Z7-731C). 


41 2p 


INDICES 

FINANCIAL TIMES 


DOW JONES 


April SS April22. Month agOjYoar ago 


Dow 

Jones 


^rll { April Month Year 


22 


ago > ago 


Z4a.j{7 244,28 j 243.39 [ 260.77 
(Base: July 1, 1952*100). 


Spot .126.84 125.59 123.99_ 
Futr's ,130.98 129.70 127.96 - 


(Baas: December 31 1974—100) 


MOODY'S 


REUTERS 


April 24 April 22 Month agojYear ago April 2S April 2S' M'nth ago, Year ago 


1003.9 937.2 990.7 1115.9 


(December 31. 1931 -100) 


161 0.6 1698.7 ' K8M_! 1695.8 
(Bsee: Saptembar 18, 1331 —100) 


SptUover orders from a steady pre- 
vioua dose coupled with speculative 
chan-linked buying provided incentive 
lor a gradual advance in light volume, 
reports Dra+ei Burnham Lambert. Setl- 
»ng at recent resistance levels trimmed 
gams slightly before a firm New York 

market prompted a breakthrough. 

'Yesterday's 

COFFEE 1 Close i-f or ;Bueiness 

‘ — :• — I Done 

.£ per tonne i i 


May i 

June [ 

Jly-Septi 
Oct-Dec; 
Jan-Mar 1 
Apl- 
J»y 
Oct- 
J’n-Mchl 


in-Mar 

Jl-Jne 

y-Sept 

:t-Decj 


67.5048 JM 
68.50-69,30 
38.80-80,00. 
61.M-S1.90, 

ti -50-53.60 

65.00-45.10 
6630-89.60 1 
B8.IO-S8.iOj 
83^0-89,90 


56.70-5B.80i 58.00 
57.7W 7.90 56.70 
58.S0-59.B0j 80JW-B930 
60.80-80.80 62.1W1.J0 
82.40-SUD 6i.8W3.10 
44.00-64.10 65.10-85.00 
85^0-86.801 - 

67J10-S7J20I - 

9850-68 JO l 88.70-68.20 


Safes: 250 (230) lots o4 15 tonnes. 
4 (nil) lots of 5 tonnes. 

Physical closing prices (buyers) 
ware: Spot 57.00 p (56.C0p). June 
55.00p (S4.25p)^ July S.75p. 


LONDON TEA AUCTION— 42.070 
packages were on offer at yesterday’s 
auction including 400 ohasts ot offshore 
t»*s. This was a ssfeotive market. 
Assam CTC’s ware a weak feature and 
shed Z-3p aim'd substantial with- 
drawals: SyKiets sold readily dose to 
valuations. Selected bright liquoring 
East Africans, together witii cotoury 
dusts, remained firm but mediums 
tended easier: Centrsl Africans were 
irregular and often lost 1-2p. Improved 
quality Ceylons sold weM at dearer 
rates, while South Indians were firm. 
Offshore teas met good support and sold 
readily at broker’s valuations. Quota- 


Wotfrm 22.410 bs'SlIB/107 
= Cash- 


Zinc 

8 mths 1 

Producers. „i 


j£429.5l 

l£4oO.Z5l 

8860/9001 


[8111/117 

+ 1.5 £428.5 
+ 13 (2427.6 
[W66/9M 


SSlSu 

>68Sy 


8505v 


turns: Quality 122p per kg (123p). 

“ * ). plain 73p 


Oita 

Coconut (PhiO 
Groundnut — I 
Linseed Crude! 

Paim Malayan 
Seeds 

v IS340y 
iA)|S278y 
Grains I 

BarleyFUt. Sep 
Mcuzo 

Wheat Futtil u ly[£12S.85 
No^HardWlnq 


Copra Ph Ho ... 
SoyabeamU^j 


£103.55 

[£135.50 


+5 


+OJ2 
+ 0.6 


5480 


(507.5 


9338 

9270 


£ 102.88 

£133.5 

£iiajo 



April 86 

April 23 


Gold Bullion (fine ounce) 



8354Jj-3553» 

(£19954-30014)1*352-353- 
(£199*4 200 5,) *345-346 
(£203.782) M346.75 , . 

(£201.127) |*352^5 

. (£199-1891*1.- 
(£19412-195) . 

- (£196.705) - 
(£198^96) 

Opening _l$364-364S+ 

Morning fixing _l*36i - - 
Afternoon fixmg]V367 


Gold Coins 


. _ 

KnigerrantL.^..^ 
1)2 Krug errand „ 
1|4 Krugerrands. 
1/10 Krugerrand 

Maple! oaf- 

New So vo reigns. 
King Sovereigns. 
Victoria Sovs_„. 

French 20s— 

59 pesos Mexico 
106 Cor. Austria. 
620 Eagles 

S3 653, -266 

81 S3 12-189 ig 

696-97 

l$39i«-404 

3364ta-366 

58614-863* 

597-98 

S97-98 
S77i a -87I* 
S43554-4391* 
$343*4-3463, 
6442^47 - 

(£2053,-20610 
[£106 -106*4) 
[£54-54*3) 

. [^2.225,1 
(£205-206) 
(£4819-48*4) . 
(£5419-55) 
(£54*8-55) 
(£4319-4914) 
(£24514-24714) 
(£19312-1943,) 
(£24834-25118) 

536219-363 14 

S 187-188 - . 
|95 1+^614;. 

93611«^63-. 

S8Bi«-86 

S98-99 

598-99 
£77-87 ’ 

543 £ 43 5*« .. 
$340*4-34314 
6440-445 

(£2043,1205 U 
v (£105*4-10614 
(£53*4-541*) 
(£22-22 It) - . : 
(£2041+-205ijl 
(£48i4-481g) . 

(£5518-56) 
(£66i9-56) 

. ' c£43t*-49lf) - 
' (£244148464) 
(£10219-124) ' 
(£24812-261 4 


medium 1C5p per kg (1C8p). plain 79p 
per kg (SGp). 


SOYABEAN MEAL 


POTATOES 


May 122830 t 32.5 1240-95 

July 1166 67 . + 28.011175-38 

Sept 1123-25 19.5' 1134-02 

Nov 1106-10 +19.S 1115-90 

January 1100-05 t 20.0, 1105 

March 1095-00 + 30.5 «- 

May...., 1085-00 + 40.0) — __ 

Sales: 3.264 (2.979) lots ol 5 tonnes. 

ICI Indicator prices for April 23: 
(U.S. cents per pound): Comp, daily 
1979 122.41 (122.401: 15-day average 
124.09 (124.33). 


The market opened D-E1 -50 higher 
on strong commission house buying 
and weaker sterling, reports T. G. 
Roddick, but eased on light trade 
aeUing. 


I 

L 


Special 

Heinold Research 
Gold Report 

Send us this coupon and you wifi receive a 
free copy of- the Heinold Research Group 
Special Gold Report. 

Name 1 


Address 


Telephone Hope. 


OffiCG 


Heinold Commodities Ltd. 
Plantation House, Mincing Lane 
London EC3M 3DX 
Telephone: 01-623.9611 
Trading Desk: 01-623.9615 
Telex: 888566 


427 




GAS OIL FUTURES 


The Falkland, dispute and a strong 
New York ciose combined with some 
crude news |o causa a strong opening. 
The market drifted to trade actively 
around the mid -range, reports Premier 
Min. 



Ynttrdyt'-f or. Buiinus 
Close ! — | Done 

' 

£ ( f 


per tonne | 

June 

lM.M-ia.s! + Q.4fi| 1i3.S0-S8.7Q 

August.....;. 

1S8.S0-SB.8I + 1.0m 139.40-49 JO 


158.00-49.21 + OJM 140.00-53.20 

Dec 

M2. 10-42.5! + O.BO M2J0-42.4D 

Feb 

144£fM&.7| + 1.1B1 — 

April 

149.00-48 Ji| + 1.7&I — 


Month 

Yest'Cayx-f or: Susiheis 
[ dose : — i Done 

*P«L 

S U.S. ; ; 

■per tonne 

.. 297.SG +6.50:286.00-34.00 

May- 

!= 295.00 :+6-2S;239.aaB2J5 

July 

294JW '+650 28S.50 8IJ6 
: 292.75 i - 5.25 285^0-80^0 

EqdL ' 295.00 !t 5-M.297.M.94 JM 

OcL 

297.00 1 + 5JM 287.BQ-9B.00 

J 298.50 - 4.HJ, — 

Dec 

.. 301.00 ; + 3.00, - 


Sales: 128 (313) lots of 100 tonnac. 
SOYABEAN OIL— The market opened 
SI 1X0 higher on stronger cash 
markets, reports T. G. Roddick. Profit-' 
taking eased prices. Closing prices 
and business done (U.S. S per tonne): 
June 508-00-18.00, un traded; Aug 
511.50-13.50, 519.50.14.00: Oct 515.00- 
16.00, 513.50* 14.00: Dec 518.00-18.50. 
522.00-18.00; Feb 522.00*24.00. un- 
traded; April 522.00-34.00, untraded. 
Turnover 158 (223) lots of 25 lOnnas. 


LONDON POTATO FUTURES— All 
positions opened higher, but eased 
during the day, reports Coley and 
Harper. Closing prices: Nov 65.60. 
-0.20 (high 67.00, low 66 JO); Fab 
75.90. unchanged (high 77,00, low 
75.90): April 88.00. -0.10 (high 89.00. 
low 68.00); May 99.60. +0.70 (high 
ICO. CO, low 98.20). Turnover: 299 (142). 
lots of 40 tonnes. 

•Je 

GRIMSBY FISH— Supply poor, 
demand good. Prices at ship’s side 
(unprocessed) per atone: shelf cod 
E5CO-C5.50. codlings E3.50-E4.5O: large 
haddock r5.20-E6.23, medium £4J30- 
€5.00. small £2.40-63.50: medium plaice 
£« .50- €6. 80. best small C3.80-C4.70; 
skinned dogfish (medium) E4.p0-E5.00; 
lemon sole (large) £9.50, (medium) 
£8.50; rock fish £2.10; safehe £1.90- 
£3.00. 


+ 56 
+32 
+2B 


Other | 

commodities 
Cocoa afifp’t* £1039 
Future May [£978 .9 
Coffee Ft' July £1166.5 
Cotton AJndeid7 1.39c 
Gas Oil May ..JS299.25 
Rubber (kilo)-. 57 p 
Sugar (Raw/.... £l27yv 
Woolt'psfi4s kt.]401p kiloj 
t Unquoted, x May. v June. 


£1021 

£ 1010.8 

£1183.5 


+ 6.5 
+ 1 
+1 


T Oja [70. 70c 


8260 
[54^p . 
[£146 . 
3S2pWU> 
y April- 


Further dedine seen in 
Malaysian palm oil exports 


May. u May-June. t Per 78-lb flask. 
• Ghana cocoa, n Nominal. § Sailer, 


Fruit — Jamaican: 14/56 5.00 - 6.00. 
Ortaniques—Jamsfora: 46/123 5.00-630. 
Apple* — French: Got dan Delicious 9 kg 
4.20-440. 18 kg 7.50-8.60: New Zeefand: 
18 kg Cox’s Orange Pippins 12£0* 
14.00; Chrlean: 18 kg Granny' Smith 
11.00-11.80; S. African: 18 kg Gatoerr 
DeKcioua 11.00-12.00. Staririug 11.50- 
12.00, Granny Smith 12.50-13.00: U.S^: 
18 kg Red Detictoua 9.00-14.00; French; 
Stvritcrimaon 7.50-10.00. 


KUALA LUMPUR. — Indo- 
nesio's exports of crude palm 
ofl Dlls year are expected to 
decline further this year ' to 

150.000 tonnes, according to - ’ 
Malaysia's palm oil registration 
and Hcensing authority .(Porla): 
Indonesia's palm oil production 
this year is estimated, to reach 

810.000 tonnes, a 8.5 per. cent 
rise over last year's level of 

740.000 tonnes. 


MEAT/VEGETABLES 


SM1THFIELD — Pence par pound. Bssf: 
Scotch kihed sides 84.4 to 88.1; 
Ulster hindquarters 100.0 to 104.2, fore- 
quarters 58.5 to 62.6. v«al; Dutch 
hinds and ends 122.0 to 125.5, Iptnb: 
English small (new season) 106.0 to 


SUGAR 


111.0, medium (new season) 104.0 
100.C — 


Turnover; 3.361 (3.79*) lots of 100 
tonnes. 


GRAINS 


The market opened higher and old. 
crop wheat led the way ’for a g on end 
rise with shipper and commercial buy- 
ing. Old crop barley met some selling 
wtule new crop wheat eased off a 
Stria on thB dose, Ach reports. 


LONDON DAILY PRICE — Raw sugar 
£127.00 (£126.00) a tonne cif Aprif- 
May-June shipment. White auger daily 
price £7 60.00 (£153.00). 

First trades were higher in response 
to renewed Falkland concern. Trade 
selling appeared at the higher levels 
and the market back-tracked over the 
day, reports C. Czamikow. 


No. 4 

Yesterday 

Previous 

J Business 

Con- 

tract 

| dose 

. close 

done 

1 


WHEAT 


BARLEY 


jYoaterd'ys +or 'Yest'rti’yil -f-or 
Mnth i cloaa • — i elOM • — 


• £ per tonne 
May*,.. . 1 1!3. 76-30.00 11 28 .25-2l.SC: 1S2.M-27.M 
Aug 1 134&S4 J& JJ2J 8-32. 55(725. ?5-3 

in 7c_sa uni in » nelgjii Kim 


May J 12QJ06 
July .. 123.85 
Sept J 107.60 
Nov_i 111.45 
Jan.J 115.55 
Mar..! HB^O 


+ 0.20 
+ 0,16 
j+ais 
1+0.15 


>+0.701 111.60 i-0.40 

' + aM, - 

Ojs! 103.55 
j - | 107.35 
+0.06! 111.40 
:+O.I3,'_114JO 
~ Businesa doifs— Wheat May 120. Gi- 
ll 9. 80. July 124.00-123.75. Sept no 
trades, Nou 111.63-111-45. Jan 1-15.65- 
115.60. Mar 119.20 only. Sales: 135 
lots of ICO tonnes. Barley: May 112.40- 
tlT.to, Sept 1C3.55 only. Nov. Jan 


Oct ! 138.75-29^0 

Jan i 242.75-43.50 

March [166.1M0J6 
May_^| i52.S0-SS.00 


1U.10-3826 141 JM7.7B 
141.fHH2.6Q 14430 
1M. ID-48.70! I61.D0-49JS 

, . J 1S1 J38-61 J0ll53 JW-52.0O 

Aug jlfifi.00-57.MllK.fl0-&6.Mi 156.75 

^aleK 3.829 (8.102) lots of 50 unites. 
Tate and Lyle delivery price lor 
gramdated basis white sugar was 
£374.00 (same)' a t onne fob for home 
trade and £234:00 (£233.00) for export. 

international Sugar Agreement (U.S. 
cants per pound) fob and stowed 
Caribbean ports. Prices for Apni 23; 
Daily price 8. S3 (8.53): 15-day, average 
9.7* (3.88), 


to 108.0. heavy 100.0 to 102.0: Imported 
—New Zealand PL 63.0 to 64.7. PM 

62.0 to 54.0. PX 61.5 is 63.0. YLs 
50.5 to 62.0. Hoggets: English 93.0 to 
100.0. Paric English, untied 100 1b 

41.0 to 55.5. 100.120 lb 46.0 to 55.0, 
120-160 lb 42.8 to 52.7. 

—No. 11 — - — - — ? 

MEAT COMMISSION— -Average Pat- 
stock prices at representative markets. 
GB — Cattle 101.68c per kg Iw (—0.69). 
UK — Sheep 224.79p par kg eat dew 
< -12.48). GB— Rigs 73.03p per kg Iw 
(-2.58). 

COVENTT GARDB*— Prices for thr 
bulk of product, in sterling per pack-: 
age except where otherwise stated. 
Imported Produce: Oranges— Spenia: 

16 kg Navets 42/130 4.60-5.60: CypPOCi 
15 kg Valsncre Lstas 3.30-4.60: Jaffa: 
20 kg Shorn outi to 5.50. to 5.70, 75 
5.60. 88 5.60, 105 5.45. 123 5^0, 144 
4.20, )BB 5.15: Moroccan: iBfcg Valen- 
cia Lutes 48/113 3.50-5.00. Topaz— 
Jaffa: 53/90 5.00-8.00. Lam one — Cypriot: 
10 kg 4.00-4.80: Spsrtia: trays 5 kg 
40/50 1 JO-1. SO; Jaffa: 18 kg 90/105 
4.50-5.00: U.S : 17 kg 5.00^.00: Out- 
apan: 15*9 kg 80/120 4 50-530; Italian: 
100/120 3.50-4.00. Grapefruit— U.S.: 16/ 

17 kg Taxes Ruby 5.00-6.00. Florida- 
Ruby 7-50-8.00; Cyprmfc small canons 
17 hg 3JO^.OO: Jaffa: 20 kg 27 4.2S. 
32 4^6. 36 4.45. 40 4.65. 48 4.35. 56 
4,85. 84 4.75. 75 4.50. 88 4.00. Ugli 


English Produce: Potatoes— Per 55 lb, 
White 4.20-4.50. Red 5.00-5.80. King 
Edwards 4.75-5.50. Mushrooms— Per 
pound, open 0.50-0,60. 0»OS«I 0.80- 
Oto. Apples— Per pound, Bromley. 0*20- 
OJO. Idared 0.18-0^3. . Pwl — Pro- 
pound Conference 0.16-0J30. Lettuce— 
Per 12, round 0.80-1.60. Coe 10s 2.50. 
Onions— per 4Q/83tmn 2:50-4.00. 
Carrots — Par 28/28 lb 2.00-230. Beet- 
roots: Par 28 lb. round 1.00-1-2Q. long 
1-20. Swedes— Par net 1.00-1 JO. 
Rhubarb— -Per pound, outdoor 0.06-0.10, 
Leeki — Per 10 lb 1.00-1.40. Parsnips — 
Per 2S/28 lb 1.20-1.60. Turnips— Par 
28/28 lb 1 .00-1 ,4G. Cucumbers — Per 
package Z 40-3.00. Greene— Per 30 lb 
Kent 2.00-2.40. Tm Bwe P er pound 
D/E 0.35*0.45. Cauliflo we rs Per 16/24 
Kent 4.50-5 .CO. 


Malaysia’s palm oil exports 
last year totalled 2.48m tonnes, 
an increase of 8.8 per cent over 
1880s 2.28m, Porla figures 
show. 


Exports were wortb. 2Sb o 


crude palm . oil liy tiie; many 
refineries in the country. 

The decline in CPO exports 
was ; amply offset hy processed 
palm oil exports : ’ which 
increased by 2B(>,711 tonnes or 
12.5 per cent to raise its share-, 
from 91.3 pej-'cent in 19SO to 
94.4 percent last 1 year, PORLA 
added. Indonesia imported. • 
40,000 tonnes of /processed;. t)U;_. 
from Malaysia last year. ; 

PORLA noted that the bulk -of 
of fte increased exports- was in 
fully refined products.*' - 
• In Bonn the East Bloc Agri- . 
cultural Newsletter sai* «ie ' 


n^git compared to 2.B2bn. in ' Central Committee of. the Soviet _ 
1980, snowing a decline jii liie • Communist Party recently- 


average per unit value, Porla 
said in its April bulletin. 

Crude palm oil exports were 
only 138,779 tonnes, a drop of 
58,880 tonnes over 1980, an 
indication that. CPO exports 
may eventually tail off, Porla 
said. 


PORLA gave the. reason as 


decided on measure’s to increase 
production and state purchases 
of sunflowetseed, .’ ' soyabeans, 
rapeseed and other oilseeds arid 
improve their quality.’- --- 

It said the measures include 
the improvement of areas sown 
to oi (seeds through the wide use 
of the latest scientific methods 


EUROPEAN MARKETS 


the large domestic demand for . and the strengthei^hg-of farms? 

• ' material and technical -base. " • 


ROTTERDAM. April 26. 
Wheat — •(LI.S. $ per tonne): ’U.S. 
No. 2 Doric Hard winter. 13.5 per' cent: 
Ape* 207. May 203, June 202. U.S. 
No. 2 Rod Winter; April /May 170.60. 
U-S. No. 3 Amber Durum: AeM/Mey 
182, May 183. June 183, JuJy 16*. Aug 
.185. Sept 190. Oct 192. Nov 194. U.S. 
No. 2 Northern Spring, 14 per eenc 
May 190, June 188. July 187. Atifl 188, 
Sept 189. Oct 192.50, Nov 133.50. 
CenMien Western Red Spring: JMey A 
Sept 205. 


Sept 276.60, Oct 272.50. Hw 272.50, 
Dec 277. Jan 282.50. Feb’ 288. March 
290 quoted: June 231.50 traded. 

SoyaroeaJ— (U.S. S per tonne), 44 
per cane Afloat 24s, April 339. May 


• The ability of oilmills to dxji 
prepare and store oilseeds"^ , ■ 
also be unproved, .it- said. , ; 

The newsletter' said ' other ... . 

measures included" Shortening 

2 K.S 0 , Mey/Sept 237^0. Nqv/Warch . the harvesting perlodfixang oli- 
Apia 2X30/233. - May seeds purely for crushing and. ; 

■ *« '<«e. 

•on). AprN 247 . May 248. ■ May/Sept cultivation . of new-early : npen- . 
245.50. Nov/Mapdh 238.50 eeflera. tag strains and- hybrids J)f sue- : 

parisi April 2 s. . flowerseed, soyabeans ind ot^f .; 

' oilseeds,-' 


Maiz *“ (U.S. s per tonne): .U.S. 
Wo. 3 YeWow: Afloat oil Ghent 139. 
April 137.75. May 136. June 136. July/ 
Sept .135. Oct/Dec 136.76. Jan/Maratf 
145.50 oartars. 

Soya beat x— (U.S. S per tonne): U.S, 
No. 2 YaUow. Gtdfports: May 271.75, 
June 272., July 273.50,. Aus 275.26, 


Cocoa— (FFr per 100 kg): May .1046/ 

1050, July 1115 asked. Sept 11© . , 

asked. Dec 1180/1)89. Marah 1210/ These hybrids will be - more: 
SSSL U d raii^ 0/12<0 ' Ju,y ’ resistant • to- .parajjtfe»v;-_agd. ^ 

sugar — (fft par tonne): Juiy less/ : disease and mechaiiicij,harvwL k . 


Vsir ' 

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at; 

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Vi’.- S 

,' ! h J 


J '3lq 

i 






L -'a, 


1700, Aug 1691/1896. Oet 1865/1865. Ug of (ton Will aiSO he'pOSSlbter ./.- ' 
Nov 1655/16©. Me 1670/1680. March it added! " . i' V * 

1740/1747. May 1775/1785, July 1820/ ? - 

1830, Solas at call: nil, Reuter 




Wap- 




1 







Financial Times Tuesday April 27 1982 

Ganpaniss and Markets 


INTERNATIONAL COMPANIES and FINANCE 


HUNT BROTHERS INCREASE INVESTMENT 

Briton buys stake in Gulf Resources 

BY PAUL BETTS W NEW YORK ' 


Modest 
gain for 
defence 


Wickes seeks protection 
at bankruptcy court 


MR ALAN CLORE, the son of- 
the late Sir Charles Store, one 
of Britain’s, wealthiest men, has 
acquired 14J3 per cent of Hie 
common shares - of Gulf 
Resources, the troubled U JS. 
mining and chemicals comoairy 
tor $2Gm. 

The British fo n<riTip<gg ny nr T ,n a 
filing with the UJS. Securities 
and * Exchange Commission, 
indicated that be may seek “ to 
Influence the management of the 
company.” 

Although Mr Clore has held 
a small share stake in the UJS- 
company for some time. Gulf 
Resources said it was surprised 
to learn that the British 
businessman bad acquired such 


a large holding through a 
Panama company he controls. 

Ur Clore has been known for 
investing in possible takeover 
targets in the U.S. and then 
forcing the hand of the manage- 
ment of such companies. He 
was involved in the recent take- 
over of the Marshall Field 
retail chain by British American 
Tobacco .and also, two years 
ago, in the Pullman takeover 
which finally led to the merger 
between Pullman and Wherf- 
abrator-Frye. 

Moreover, the Bunt brothers 
of Dallas have also increased 
their stock holding in Gulf 
Resources. . In another SEC 
fi li ngs their Placid Oil Company 


disclosed it had increased Us 
stake in Gulf Resources, from 
about 9 per cent to 11-58 per 
cent. ‘ 

Although Placid Oil has so 
far claimed that the increase of 
shareholding was an investment 
decision, the company has not 
ruled out additional purchase of 
Gulf Resources shares. 

This has led to speculation 
on Wall Street that the Bunts 
and Mr Gore could be contem- 
plating a move to gain control 
of the company or - jointly 
influence its management. 

What has surprised Wan 
Street is that these two parties 
should have decided to increase 
their investment in the troubled 


company which lost ?77.Sm last 
year on revenues of $37S.4m. 
This heavy loss reflected the 
company's write-off of its 
Bunker Hall Mining and Smelter 
operations in Idaho. 

In the filing with the SEC, Mr 
Clore and the Panamanian 
company he controls — Zopress 
Commercial — said they held 
1,286,600 shares of Gulf 
Resources including 148,800 
shares acquired last Thursday 
from Bauson Holdings Nether- 
lands BV, a subsidiary of Ban- 
son Trust, .the London-based 
holding company. 

The additional shares were 
acquired at $22 a share or for 
about $3m_ 


CSFB lead manages $100m bond offer 

BY PETER MONTAGflON, EUROMARKETS CORRESPONDENT 


UNDAUNTED by changes in 
-its senior management Credit 
Suisse First Bos ton was back 
in force in title Euromarket 
yesterday as lead manager of 
a ?100m, seven-year 15 per cent 
issue for Banque de lTbdochzne 
et de Suez. 

The bonds, which are priced 
at par, are jointly led with the 
borrowing bank. 

Elsewhere, the Eurobond 
market doggedly continued to 
move higher yesterday despite 
a much weaker opening in Wall 
Street which normally sets the 
tone for Europe. 

Six-month Eurodollars shed 
almost 1 point to 14} per cent 
in the wake of better than 
expected U.S. money supply 
figures announced over the 
weekend, and fixed rate dollar 
bonds rose by} point on average 
in active trading. 

Dealers said the movement in 
Europe was a sign that investors 
on this side of the Atlantic 


remain confident that long-term 
rates are likely to move lower. 
Good investor demand for new 
issues continues and prices of 
some seasoned bonds were also 
pushed higher yesterday by 
professional short-covering. 

Swedish Export Credit yester- 
day attempted to profit from 
the stronger tone of the Euro- 
bond market by launching a 
$100m, eight-year 14} per cent 
issue through Goldman fiaebR, 
CSFB and Morgan Stanley. 

: A general market reaction 
was that the coupon was rather 
aggressive as Swedish issues are 
not as popular with Swiss 
.investors as those for' names 
such as British Columbia Hydro 
and Union Carbide, which 
launched issues at this level last 
week. 

Some leeway to find the right 
yield level for this issue has, 
however, been left as the issue 
price is still open until Thurs- 
day. 


Is the floating rate note sector 
Mexico's largest commercial 
bank Bancomer is offering $60m 
at a margin of } per cent over 
six-month Libor. The sub- 
ordinated notes carry a mini- 
mum coupon of 5} per cent 
and will be redeemed in five 
equal annual instalments begin- 
ning in 1986. Lead manager 
is Orion Royal Bank. 

Xn Germany, where bond 
prices firmed by about | point 
yesterday, Philip Morris has 
launched a DM 100m, eight- 
year 8} per cent issue Through 
Dresdner Bank, while else- 
where Italy’s state holding com- 
pany 2RI is raising Yen lObn 
over 12 years with a coupon 
of 8} per oent and issue price 
99 f through Industrial Bank of 
Japan. 

Swiss franc foreign bonds 
were little changed as inflation 
fears revived following adverse 
consumer price figures for thp 
City of Basle last month. The 


Euro pean Investment Bank's 
SWFr 100m, 10-year issue was 
given a coupon of 7 per cent 
and issue price 100} by - lead 
manager Credit Suisse. 


Current bond issues 

Several lines were transposed 
in yesterday's table relating to- 
lead managers for current 
Eurodollar issues. 

The lead ’manager of the 
Commercial Credit Finance 
issue is Continental Illinois. 
Lead managers of the Sabah 
Development Bank issue are 
Bank Bmniputra, First Chicago 
and the National Bank of Abu 
Dhabi. Lead managers of the 
European Asian Bank issue are 
Merrill Lynch and Samuel 
Montagu. Lead managers of 
the J. P. Morgan issue are 
Morgan Stanley, Morgan 
Guaranty, CSFB and 1 Salomon 
Brothers. : 


group 

By Our Financial Staff 

A MODEST gain In earnings 
in the second quarter brings 
the total for the first Mf 
year at Rockwell Inter- 
national to $156.7m or $2.05 
a share, against 5148m- For 
the full year, analysts have 
forecast a rise in earnings 
from $3JS4 to about $4-50 a 
share from the defence and 
aerospace giant 

The board said that In the 
second quarter, the aerospace 
and electronics divisions had 
achieved gains in earnings 
that more than compensated 
for falls in the general indus- 
tries and automotive busi- 
nesses. 

Relatively flat sales of 
SLRObn for the quarter, 
against Sl.TObn, reflected the 
recession and the company’s 
programme to dispose of 
product lines and businesses 
not fitting its strategic plan. 
In. tiie first quarter, sales 
were Z-3 per cent down. 

Second quarter earnings 
moved ahead from $92. 6m or 
$1.22 a share to $94. 8m or 
L21 a share. 

Further gains are expected 
this year from the aerospace 
divisions, which turned in 
about 40 per cent of last year’s 
profits. Some recovery is 
«ai«n hoped for in the automo- 
tive operations whieh made no 
profit last year 

But the major boost for the 
long term is likely to come 
from the resumption of U.S. 
defence spending. Rockwell 
is prime contractor for the 
B-1B bomber, and has a strong 
presence In weapons guidance 
systems and navigational aids 
and avionics. 

The revival of the U.S. B1 
bomber project will add 
between $600m and $700m to 
group revenues this year. 


Alan Friedman looks at the exodus of four CSFB high fliers 


Lehman to build its Euromarket presence 


BY OUR NEW YORK STAFF 

WICKES COMPANIES, one of 
America's largest retailers with 
annual sales of more than 
$4 bn, 3,200 retail outlets and 
100 manufacturing facilities 
both in the U.S. and abroad, is 
the latest and the biggest 
victim of the recession. 

The Los Angeles company, 
which has debts of $2bn and 
losses for its latest fiscal year 
expected to be well over 580m 
filed for protection from its 
creditors in a U.S. Federal 
bankruptcy court at the 
weekend. 

Wickes is by far the largest 
company to seek bankruptcy 
court protection in this reces- 
sion. The biggest similar case 
was that of AM International, 
the Chicago office equipment 
group, which on April 14 files 
for relief from creditors under 
Chapter 11 of the U.S. bank- 
ruptcy laws. 

Chapter 11 enables a company 


to continue to operate under its 
existing management under 
Federal Court protection from 
creditors while it works, on a 
debt repayment and recovery 
plan. 

The Wickes filing is one of 
the largest bankruptcy cases of 
its kind in American history. 

Wickes is one of the leading 
retailers of lumber and building 
materials, with 375 stores in the 
U.S. and 65 in Europe. It has 
been bit by the particularly bad 
recession in the housing and 
building industry. 

It recently appointed a new 
chairman, Mr Sanford Sigoloff, 
regarded as a corporate salvage 
specialist who successfully res- 
cued another troubled retailer, 
Daylin, in the Seventies. But Mr 
Sigoloff said at the weekend: 
“After an intensive review of 
Wickes Companies’ operational 
and financial problems, includ- 
ing its massive debt burden and 


ongoing interest expense, the 
new management has concluded 
that prompt and decisive action 
must be taken to preserve the 
company's assets and to reverse 
its seriously deteriorating con- 
dition." 

For this reason, he- decided 
to file under Chapter 11 of the 
bankruptcy law. Wickes' Euro- 
pean . operations, Wickes 
Machine Tool group, and a num- 
ber of other divisions were ex- 
cluded from the filing. 

Mr Sigoloff Indicated it would 
probably take about three years 
to turn the company round. 
Wickes’ creditor banks, which 
consist of a syndicate of -.44 
banks led by Security Pacific 
National Bank of Los Angeles, 
had already indicated they were 
willing to delay some S70tn in 
debt repayment due on April 
30. But the new management 
clearly felt it coaid no laager 
continue . without protection 


IBM hindered by strong dollar 


BY OUR FINANCIAL STAFF 

THE ADVERSE effect of 
foreign currency translation on 
quarterly ^results of Inter- 
nationa] Business Machines will 
not level off until after the 
second half of the current year 
if the strength of the dollar 
remains constant throughout the 
year, according to Mr John 
Opel. IBM’s president 

He told shareholders at the 
annual meeting in Jacksonville, 
that if the dollar gets any 
stronger, comparisons with 1981 
results could be depressed for 
the year. 

Mr Ooel added that he does 
not want to forecast that the 
dollar will strengthen over 
current levels, and said that 
IBM expects strong orders and 
shipments this year. 

Ib 1981. IBM registered earn- 
ings of $3.3Xbn, or $5.61 a share, 
on revenues of $29.07bn. 
Foreign currency translation 
reduced 19S1 revenues by more 
than $2bn and net income by 
more than $6 00m. 

Mr Opel also revealed that 


IBM's directors decided nor to 
increase the company’s cash 
dividend because the group is 
channelling much of its capi- 
tal back into the business. 
Earlier, a regular quarterly 
dividend of 86 cents a share was 
announced. 

IBM, the president stated, now 
expects to begin realising the 
productivity gains made possible 
by its sizeable investment in 
research and development and 
capital expansion. Over the past 
six years, IBM spent $?.9bn on 
R and D and $9.2bn on plant, 
equipment and other property. 

Capital expenditures for 1981 
totalled $6.8bn and R and D costs 
were $1.6bn. 

Mr Opel said after the meeting 
that IBM has not suffered the 
effects of the economic reces- 
sion because it has introduced 
several new products which have 
been well received. The group 
is developing products designed 
to improve office productivity 
and efficiency, which are less 
susceptible to an economic 


downturn. 

IBM has increased its goals 
fnr shipments of its pcr.-onul 
computer since the product was 
introduced last year, a ad hopes 
to increase production of the 
product throughout rhe year. 

A number of arrangement's 
with licensed dealers for the 
personal computer are beiug 
considered and IBM will expand 
that form of distribution as 
quickly as possible. 

IBM does not have any plans 
at the moment to develop a 
personal computer using the 
APL programming language. 
The personal computer 
currently is available with basic 
Fortran and some other 
languages. 

Mr Opel also indicated that 
the Justice Department's settle- 
ment agreement ending its 
anti-trust case against American 
Telephone and Telegraph will 
benefit IBM because the agree- 
ment clarifies the areas in 
which AT&T eon legally com- 
pete. 


"WE ARE not focuang on 
Credit Suisse First Boston 
(CSFB) alone. This represents 
a Long-derm effort by Lehman 
Brothers Kuhn Loeb to build a 
presence in Europe.” 

With these words, Mr Peter 
G. Peterson, chairman and chief 
executive of Lehman Brothers, 
sought yesterday . to ... quash 
rumours that his investment 
banking group had deliberately 
raided several key Eurobond 
market executives from CSFB. 

“ Quite the contrary,” Mr 
Peterson added. “We have also 
attracted personnel from Merrill 
Lynch and Salomon Brothers.” 

Lehman has indeed hired 
four Euromarket executives 
from CSFB, Mr Bruce Crystal, 
i floating rate note trader from 
Salomon Brothers, and Mr Cliff 
Razell, a fixed-interest bond . 
trader from Merrill Lynch. 

Lehman has had a modest 
presence in the Euromarket 
hitherto, and is trying to build 
up its operation as quickly as 
possible. Mr Jacques Gelardan, 
the CSFB executive director 
who will become a Lehman 


partner and head of the Lehman 
capital markets division, said 
he and his colleagues resigned; 
from, CSFB because they-' 1 saw 
an. opportunity to build a new 
organisation in Europe and to 
jo an at ground level.” 

Mr Stephen Bershad, the 
London-based Lehman partner 
who snatched Mr Gelardin,. Mr 
Peter Luthy, Mr Peregrine Mott 
cfeiffe and Mr Craig Anderson, 
from CSFB, said the Eurobond 
business was becoming “increas- 
ingly opportunistic." “The only 
way to capitalise on the market 
is to have the best people who 
can do the best deal at any 
moment,” 

The Euromarket was awash 
with rumours yesterday, how- 
ever, CSFB is the leading new 
issue house in Europe, and it i9 
also the house with the most 
volatile management record. No 
fewer than a dozen senior and 
middle-level CSFB executives 
have resigned over the past year 
or two. 

The departures began with 
the resignation of Mr -John 
Craven as chief executive three 


years ago. More recently Mr 
David Potter, Mr Fred Pettit 
and Mr Philip Seers have given 
Up -their directorships. — 

• Four - deputy chairmen— Mr 
HanfrJoerg Rudloff, Dr Hans 
Ulrica Doerig, Mr Robert Stre- 
bel and Dr Eric Gabtis— have 
been appointed in the past 
month. Mr John Hermes sy of 
First Boston has "just been 
appointed as chief executive of 
Finanriere Credit Suisse First 
Boston, 

Any Eurobond bouse with as 
s ucces sful a track record as 
CSFB and as high a manage- 
ment profile is bound to he the 
most popular subject for gossip 
ar European bankers’ lunch 
tables. 

The departure of the four 
Euromarket executives will be 
a heavy blow to CSFB, but not 
an insuperable one. It will not 
be lessened by the simultaneous 
departures of two other execu- 
tives, Mr Philip Seers and Mr 
Giles Clarke. -Mr Seers is going 
to work as a consultant with Mr 
Craven, the former chief 
exeputive. 


Mr Rudloff, the deputy chair- 
man who is in charge of new 
issues, will have substantially 
to rebuild his new issues stafL 
But this can be achieved, and 
Mr Rudloff is a talented and 
energetic man. The damage is 
more to CSFB's image than to 
its market ability. Its record of 
management upheaval has . 
raised eyebrows in the Euro- 
market. 

The reasons for this upheaval 
can be traced both to the struc- 
ture of the organisation and to 
the type of people who are 
drawn to work there. CSFB is 
the product of a complicated 
shareholding arrangement be- 
tween Credit Suisse and First 
Boston' Corporation; the inte- 
gration of the two sides has 
not been without its manage- 
ment problems. 

A further reason why CSFB 
is such a turbulent organisation 
is that it Is a high-pressure 
environment in which a num- 
ber of aggressive and motivated 
bankers work. The executives. 


who are seeking professional 
success and career advance- 
ment, must take risky decisions 
in short periods of time. This 
leads to intense competition 
and sometimes frustrated ambi- 
tions within the bank. 

No bank in the tough world 
of the Euromarkets is immune 
from internal dissent In 
February, 1980, a disagreement 
within tiie Euromarket depart- 
ment led to the immediate 
departure of three executives 
from Lehman Brothers. It has 
taken Lehman two years to put 
together its 20-strong Euro- 
market team, and the process 
has required the personal 
enthusiasm 'of Mr Peterson and 
Mr Lou Glucksman, Lehman's 
president. 

Lehman’s team is now in 
place; its next tads is to prove 
its mettle in the market 

As for CSFB, it was back in 
action last night with a new 
issue, only hours after the 
departure of Mr Rudloff’s key 
deputies. 


NORTH AMERICAN QUARTERLY RESULTS 


ALLEGHENY INTERNATIONAL 

r.sRSNA AIRCRAFT 

EATON CORPORATION 

JOHNSON CONTROLS 

NORFOLK AND WESTERN RAILWAY 

1982 1981 

First quarter $ S 

Revenue — 829.3m 487.3m 

1987-82 7980-81 

Second quarter S S 

Revenue 232.9m 253.1m 

Nat profits 6.74m 14.76m 

1982 1381 

First quarter 1 "S’ S . 

Revenue 738.7m 781.5m 

Net PTCjiis — . 13._9m_ 674,000 

...1981-82 1980-81 

Second quarter S S 

Revenue — 2844m 239.9m 

Net profits 7.72m 6.49m 

1982 1361 

First quarter S $ 

Sevan uo 486 448.8m 

Nat profits 89.0m 73,Bm 

Nat per share 1.87 2.13 

AMERICAN BRANDS 

Net per share 0.36 0.77 

Six months 

EMHART CORP. 

Six months 

NORTHWEST AIRLINES 


1962 1981 

First quarter S S 


1982 1981 

First quarter $ $ 

1982 1981 

First quarter S * 

Revenue 1.7bn 1.72bn 

Net profits 94.7m 113.4m 

Nat par shore 1.63 1.98 

Net per share 1.14 1.51 

Net per share 1.97 1il3 

CHROMAULOY AMERICAN 

Net profits 20.1m 6^m 

KELLOGG 


7982 1887 

First quarter S S 

Net per share 1.65 0.53 

1982 1981 

Fust quarter S S 

t Loss. 

GAF CORP. 

NORTHWEST BANCORP 

ANCHOR HOCKING 


7982 1981 

First quarter S 


1982 1981 

Rret quarter S . S 

1362 1981 

First quarter S * 

Revenue 218.3m 219m 

Net par share - 0-23 0.68 

Nat per share 0.81 0.71 

CLOROX CO. 

Wet profits 2.6m 3.9m 

Nat per share 0.13 0.22 

GENERAL SIGNAL 

1982 1981 

First quarter S S 

LAMSOM AND SESSIONS 

Net per share 1.03 1.10 

Net par share tO-17 0.22 

t Lose. 

1991-82 1980-81 

Third quarter S S 

1982 1981 

First quarter S' S 

i! ORTON SIMON 

1981-82 1380-81 

Third quarter S $ 

Revenue 7D1-2Sm 717.1Sm 

APACHE CORP. 

Net profits -• 10,29m B.BSm 

Net profits 16.23m 1 1.84m 

1982 1981 

First quarter .* _* 

Revenue 45m 39.1m 

Net profits 7.15m B35m 

Not por share 0-33 0.30 

Nino months 

Revenue 611. 58m 502 

Net profits 32.06m ' 27.09m 

Net profits — 23.5rn 28.7m 

Net per share ............ 1.08 1.05 

t Loss. 

LIBERTY NATIONAL INSURANCE 

Not profits — 23.16m 13.71m 

Net per share . 0.74 0.31 

Nine months 

Net per share ....! - 1 Jft 1.18 

GENUINE PARTS 

1982 1981 

Rrst quarter S 9 

Nat profits 18.3m 17J2m 

No* por share 232 1A9 

COMMONWEALTH EDISON 

1962 1981 

First quarter ' S S 

ARMSTRONG WORLD INDUSTRIES 

OMARK INDUSTRIES 

1982 1981 . 

First quarter * * 

Revenue 317.6m 344.9m 

First quertgr 9 S 

Revenue 1.05bn 9iB.6m 

Net profits ... 102 '^2 

Net per ahem 0.80 0.49 

Revenue 465.1m 433.8m 

Net profits ZT.38m 19/I8m 

Net per share 0.60 OJS 

LOUISIANA-PACIFIC CORPORATION 

1981-82 1990-81 

Third quarter S S 

Revenue — Blm 70.1m 

Net profits * 

GLOBAL MARINE 

Rr*t quarter S S 

Net profits 2.2am 4,01m 

Net per share .... — 0,31 0.53 

tUass 

CONSOUDATTO-BATHURST 

■1962 1SS1 

First quarter S S 

Revenue - 120m 71 -8m 

Nat profits 28.4m 12.8m 

Revenue 196 -0m 2S7.3m 

Nine months 

BALTIMORE GAS AND ELECTRIC 

1982 1981 

First quarter CS CS 

Net per share 10.37 0^0 

tLuss 

Net profits 12.74m 19.38m 

N« per share 1.77 2.71 

First quarter _* „ * 

Not profits 17.8m 26-2m 

Nar per sharer 0.34 0.44 

LUBRtZOL 

P0VNZO1L 

Not profits 

Nai per share 1-14 1-15 

COPPER WHO CORP. 

1982 1981 

First quarter S 5 

1982 1981' 

Rrst quarter S 5 

Revenue — 201 .tot 221.1m 

1982 1981 

Flretquarter $ S 

BAUSCH AND LOMB 

Rrst quarter * S 

Revenue 112.1m 101.8m 

Nat profits 15.59m 24.12m 

Net profits 29.2m 80.2m 

Net per share 0.76 1,14 

1982 1961 

_ F?ret quarter * f 



K? B ;rel}B , 3.28m 7J3m 


MANV1LLE CORPORATION 

PITTSTOW CO. 

Revenue ’rilS 

Net prenw 9 

Net per share OJtr 1J7 

CRANE 

1982 19B1 

Rr*t quarter S S 

1982 7981 

Rret quarter S S 

1382 1681 

First quarter S 9 


1982 1981 

First quarter. _.j? . ? 



BEATRICE FOODS 

Net profits 67J8m 52.(&n 

Not per share — 1.19 0.95 

Mac per sham m'.. R3.48 6.47 

Net per rtare Ml 0.44 

1961-92 1980^1 

Fourth quarter * * 

Revenue rl 4 “ m 


REVLON 

Net per share 0.B6 0^6 

1C INDUSTRIES 

MB.YILLE CORPORATION 

Not profits 74m 70-7m 

Nor per ah are 0.71 0.88 

Revenue 

Not profits 290. Inr 301.2m 

DR PEPPER 

Revenue ... — ........... 934.8m I.Oitm 

Nat profits 7.7m 24.7m 

- 1982 1981 

Hist quarter S S 

Fret quarter S S 

Revenue - 5571m 546.9m 

• Rrst Quarter S S 

Revenue fS-Jm 7Sj3m 

Net profits 3-Wm 5fi2m 

Nm per share 0-18 0.2G 

INGERSOLWIAMD . 

Net profits ......... 524nv 5.18m 

Nat par share . — ,QJD OJD 

Net profits — 28m 43.7m 

Net per share 0.63 1.02 


Net profits — .... 34.8m 37.Vtn 

Net per whan 1.69 1.86 

MILTON BRADLEY 

REVERE COPPER AND BRASS 

1992 1SET 
First quarter $ S 

' “ 1982 '1961 

First quarter S * 

Revenue 168.2m 159 -2m 

Not profita 1-75™ iron 

Nat per share 0.31 0.37 

R. R. DONNSJLET AND SONS 

INTERNATIONAL RECTtFIBl 

First quarter S 9 

Revenue ' 73L3m 77,2m 

Net profits — 3".36m -4.13m 

Net per share 0.46 0.68 

MORR1SON-ICNUDSEN 

. 1892 1881 

Rret quarter * 

Ravonua 324.3m 277.2m 

N« profits 1*^" 

isn-ez 1 S 8 Q -81 

Third quarter S S 

Revenue 31nv 32.7m 

Net profits — - 1790/300 996/739 

Net profits t7.08m 6 - 26 m 

Net per share 1VJ4 1.10 

t Loss. 

BRISTOL-MYERS 

1982 1881 

Firet quarter ' S . 

Rovanuo 883.7m 859.7m 

Net profits 79.15m S7J5>n 

Nat par share 1-18 1-01 

DOW CORNING 

1382 1981 

First quarter • X X 

Revenue 176-fim 185m 

Nn profits 18.8m 19m 

Nine months 

Revenue 91 An 9fi.3m 

Net profits — t9K.OO(3 3.02m 

Net per ah»re ■ 10^5 1.06 

ILasa 

IU RtfTERNATlONAL 

1992 raw 
Rrst quarter ■ S S - 

Revenue 542.7m 430.8m 

Net profils - 6.71m 6.74m 

Nat per shore 0.66 0S7 

1962 1961 

H« quarter $ S 

Reveauo 118.24m 71.06m 

Net profio 43.16m 17.81m 

Nn P« share . — 0.87 0.35 


DUKE POWER 

1982 1981 

First quarts r S S 

Revenue 4B0JSnSBSXlm 

Net profits 1SL9m !«!* 

Nat per share OS? 

ILos* • 

MOTOROLA ' 

ROYAL CROWN 

1862 MSI 

First quarter 5 

Bovanirt fS;S m 

Nat profit* 81.46m 75.96m 

Net per share — !•« i ® 

'1962* 1981 

Ftnt quarter . -8 * 

Revenue — - 5934m 

Net profits - I48J3n» 82J7m 

Not por share 1.42 0.90 

1982 1991 

First quarter S S 

Revenue — .... 913 An 832.9m 

Net profits 24.6m 46-%n 

Net per share 0-96 1-32 

1992 1981 

Firet quarter $ $ 

Revenue 109.1m 1C8.3tn 

Net profits _/ 3.C1m 2,14m 

Net per shore 0J7 026 


FT INTERNATIONAL EOND SERVICE 


The list shows the 300 latest international bond issues for which an adequate secondary market 
exists. For further details of these or other bonds see the complete list of Eurobond prices which 


will be published next on Wednesday May 12. 


Closing prices on April 26 


as. DOLLAR 

STRAIGHTS treued 

Aetna Life 15 B0/S7 ISO 

Amax InL Fin. IB 1 , 92 75 

Anheuser-Busch 16** 88 100 
APS Bn. Co. Itt, 89 ... 75 

Armco O/S Fin. 15\ 86 60 

ATT 14*. 89 400 

Baker fnL Fin. 0.0 92 225 
Burroughs InL 15V 88 50 

Canadair 15*i 87 150 

Can. NaL Rail 91 IDO 
Carolina Power 16 1 * 89 60 

Caterpillar Fin. 18*? 8E 100 

CIBC 16 87 . 100 

Citicorp O/S 15 M/92 100 
Citicorp Q/S 15*, BS/97 125 

CNA IP* 97 75 

Con. I'linois 15>, B9 ... 100 
Duke Pwr. O/S 154 39 60 

Dupont O/E 144 B8 ... 400 
Dupont 0/5 Cap. 0.0 90 309 

ECSC 14V 87 50 

EIB 15** 89 150 

Gen. Elec. Credit 0.0 92 400 
Gan. Elec. Credit 0.0 93 400 
GMAC O/S Fin. 16 88 150 
GMAC O/S 15V 85/97 100 
Gulf Canada Ltd 14V 92 100 

Gulf Oil 14V 94 175 

Rull Oil Fin. 0 0 92 . 300 

GuK States O/S 18 90 60 

fnr. -Am. Dv. Bk. 15V 67 55 

Japan Airlines 15V 88 50 

Japan Dev. Bk. 154 87 50 

Net. West 14V 91 100 

New Brunswick IB 1 , 83 75 

N'— 1 A i H-, 17V 89 T6 

OKG 15V 85/97 50 

Ontario Hyd. IB 91 (N) 200 

Psc. Gas A El. 15V 89 80 

Poc. Gas & El. 15V 89 45 

3. C. Penney Gl. 0.0 94 350 
Hue bee Prov. 15V 89... T5D 
RJ. Rynlda. Q/S 0.0 92 400 
Saekatchewan 16V 88... 100 
Saskatchewan IB 89 ... 12S 

Spain 15V 87 100 

Statsforetao 15V 87 ... 60 

Sweden 14V 88 150 

Sw. Ex. Cr. 16V 84/93 75 

Swed. Ek. Crsd. 15V 89 700 
Swed. Ex. Cred. 0.0 94 200 
Texaa Eastern 15V 88... 75 

Transceneda 16 89 10 O 

Welle Fargo I. F. 16 87 75 

WMC Fin. 15V 88 50 

World Bank 15V 88 ... 250 


Change on 

Bid Offer day wreak Yield 
102V 102V — — 14.17 

102V 103V +0V +0V 15.85 
103V 104V +0V +0V 15.38 
103V 109V +0V +0V 16-24 
1COV 101 +0V +0V 15.06 
102 702V +0V +0V 13-70 
26V 26V +1 +1V 14-35 
104 104V +OV +1V 14.60 
101V 102V +CV +DV 14-83 
99V 100 0 +1V 14.63 

105V 105V +0V +0*, 15.08 
103V 103h -H/V +0V 15.32 
103V 1MV +0V +1V 14.76 
100 s , 101V — — 14.44 

101V 102 +OV+OV 14.64 
1Q0V1P0V +0V +1V 15.76 
103V 103V +0V +1V 14.84 
100V 101 — — 15.31 

100V W1V +0V +OV 14.23 
35 35V 0 +0V 14.32 

99V 99V +0V +1V 1A84 
101V 10*V +0V +1 15.11 
28V 29V +0V +2 13J0 
24V 25 -0V +1 13.79 
102V 102*. +0V +OV 15. ?4 
98V 99V +0V -«-0V 15.67 
99V 99V -H>V +1V 14.86 
98V SB +DV +0V 14.46 
27V 7V, +0V +1 '13.96 
100V irOV — — 15B8 

100 100V +0V +1 14-93 
101V 1KV 0 +DV 14.^2 
102*, 103V +0V +0V ia.54 

101 IfliV +0V +’*» la.ae 
10.1 10*1; +DV +1V 15/17 
106V 106V D -HIV 15 67. 

98V WV 0 -FOV 16.08 
10BV KW, +0*, -*-2 la.m 
«WV in»V 0 +0V M.S4 
10*V 104 +0V +1V 1«59 
21V 21V 0 +0V 13.°0 
100V 101 +0V +1 15.02 
26V 28 *, 0 +0V ia.55 
inav 104V +0V -MV 15 0*. 

104V 104V +0V +1V 14.88 
99 99V +0V +0V 15 °e 

ID***, U»V +BV +DU 15 54 
9SV 96V 0 +0V 15.41 
lOi\ in2V n +DV 1S.7S 
99V 99V O -FOVtt .i 5 
20V 20V +OV +OV 14JM 
103V 103V +0V +0V 14-91 

102V 103 +n«j 4.n, 15.30 
101V. 101V +"V +0*. 14 52 
99 s , 99V -*-nV 4- ft, 15.94 
101V 101V +0V +0*. 14.86 


Average price changes... On day +DV on week +1 
DEUTSCHE MARK 
STRAIGHTS Issued 

Australia PV 91 300 

Australia 9V 91 200 

Comp. Tel. Eeo. 10V 92 ICO 

Denmark 10 88 100 

ttenmprk 10V 92 100 


EDF SV 92 100 

EEC 10V 93 100 

EEC 9V 94 200 

EfB 9V 88 BO 

Inter-American 10V 91 WO 

Ireland 10V 86 100 

Mexico 11 88 100 

Ml. Bfc. Dnmfc. 10V 91 10Q 
Nacnl. Financiers 11 90 150 

Nat. Wear. 9V 92 TOO 

New Zealand 9V 89 ... 200 
OKB BV 86 150 


Change on 

Bid Offer day week Yield 
TOflV 10«V +0V +0V R.6S 

104 104V +0S +OV 8-66 
100V 101V + 0V +0V 10.34 
1W», 1WV +PV +1V 9-30 
102\ toeV +OV +1V 9.81 
102 li»*„ +0V +1 9.53 

104», 104V ■* , ®V +0V 8J>8 

1D*V m*v +l>V +r»V 9 3* 
WV in»v -OV -OV B.*»t 
104V fOSV 0 0 8.30 

in?v ion, -or* +nv 9.34 

1CWVHWV 0 -OVlO^S 
102V 1 <”V 0 0 9.98 

101 101V +«*V + r V 10 14 
105V i«V -OV -OV 8-°9 
104V ■ , f |e V +OV 0 8 78 

101V 1I«V 0 +OV 
W8V W", +0V +1 
HKV 1C6V +OV +0*, 
nr* ioiv +PV +i 
i «V m*V - L <>V +o^ I*-** 

irun, inn, +m, +-»V 9.0a 
lOavtGSV 0 +0V MB 


OTHER STRAIGHTS Issued 
Crd. Foncier 17V 89 CS 30 

Montreal 17 89 CS 50 

Queb. Hydro 16V 89 CS 50 
Quebec Prov. 17 89 CS 50 
Simpsons 16V 89 CS ... 40 

Tordom Cpn. 16V 88 CS 25 

Transafta T7 89 CS 90 

U. Bk. Nwy. 9V 90 BJA 18 
Alsemena Bk. 10V 86 FI 60 
Amfaa Group 12V 86 FT 40 
Amro Bank 12 88 FI ... 75 

Amro Bank 12 86 FI ... SO 

Pierson 10V 86 FI 50 

Rabobank 12 B8 FI 50 

OKS 14 88 FFr 400 

Solvay et C. 14V 86 FFr 200 

Aeons 14 85 E 20 

Beneficial 14V BO E 20 

BNP 13V 91 £ 15 

CECA 13V 88 £ 20 

Fin. Ex. Cred. 13V 88 C 15 
Gen. Elac. Co. 12V 89 £ - GO 
Hiram Wofker 14V 80 C 25 
Prlvatbanken 14V 88 £ 12 

Quebec 15V 87 E 35 

Reed (Nd) NV 16V 89 E 25 
Royal Trustee 14 86 C 12 
SDR Franca 15V 92 €... 30 

Swed. Ex. Cr. 13V 88 E 20 
Eurolima 10V 87 LuxFr 500 

EIB 9V 83 LuxFr 600 

FLOATING RATS 

NOTES Spread Bid 


Change on 

Bid Offer day week Yield 
196V 28V — — 17.48 

tIOIV 101V -OV -OV 16.59 
tlOOVIOI 0 +0V1B.28 
tun 107V — — 16.61 

t95V 96 — — 17.89 

199 98V +OV +0V 16.67 

flOOV 101V 0 +0V 16.69 
S9V 91 -<P, -OV 11.41 
100V 101V +0*3 +0V 9-90 
W\ 105V +0V +OV 10.72 
105V 106V +0V +0V 10.14 
105V 106V +0V +OV 10-23 
100 ICO*, 0 +0-', 10.15 
105*4 106V +0V +0V 10.13 
90V 91V 0 0 17.48 

' 9ZV -OV +0*4 17.73 
93 0 -OV 16.84 

E7V 0 +0V 17.1 B 
«>V +0V +0V 15.63 
9«V O +0V 14.P2 
0 — - 
0 
0 
0 


91V 

92 

S6V 

89*, 

93»j 

94V 

91V 


95V 

82*. 


S6V 97V 
93V 9*V 


+3V 15.57 
+0V 14.41 
+0» e 15.25 

+0*, 1S.17 
100*- 101V — OV ■‘OV 15.1" 
101V 107V +OL +1 16.74 

rev 97V o +ovi4.ra 

flp*4 w +0V +r*i 15.77 
op, «rr*. an - -, +nv v.7n 
ps». rev +0*. — OV 10.72 
94*, 95V -0*4 — OV 11.01 

Offer C.dte C.cprt C.yW 


B8V 15/10 15.69 15.91 
TO*, W/4 17.08 17.24 
13V 13;«2 

17.0S 17.24 
16.94 17.03 
16*4 16.W 

1C. 82 15.01 


Allied Irish 5V 92 OV 98V 

Bank of Montreal 5*4 91 OV P3V 

Bk. of Tokyo 5V 91 (D* OV 38'- 99 tors 

Ba nk. Nova Scotia 5 V 93 OV 98V 99V 2SU 

BFCE 5», 88 OV »V 99*i36>4 

BFCE 5*i 37 OV 99V !» r . 77/7 

CCCE 5V 2D02 OV 9SV 98V 11/B 

Co-Ban Furofin 5*? 91— OV S 8 V P9L la/tO ip 18.14 

Credit Agricolo 5V 97... OV 99*, W' a 24f9 15.44 15.«W 

Credit Lyonnais 5V 97... OV W 1 - ICO 1/10 16 16.04 

Credit Nar. 5V M JOV PSV 99V 5 /fi 14.69 14. M 

Denmark, Knodm. of 92 0*.* 94V 24/8 

Dan Norsks Cred. 5V 93 OV 47V 99V 4/6 

Genfinance 5V 92 OV 9°V100 30 'G 

GZ&5V 82 ._JOV 98V S5V 8/G 

Ind. Bank Japan 5*, B8 6*, '99V 99V 9/5 


9.03 

SJ01 

9.30 

9A0 


Ouebec 10V 92 150 

fluebec Hvdro 1CV 91... 150 
Tnuernmno h *hn 9*, 94 50 

Vanerue/a 11V 91 100 

World Bank 89 K» 

World Bank 10 91 2» 

Averapa price changes. .. On day +OV on weak +0*j 

SWISS FRANC Change on 

STRAIGHTS laaued Bid Offer dm week Yield 

Anaett Trsnaoort 7V 92 50 KQV ma -0*, +0*, 6.AR 

Asian .Dew, B'nk 8 BO 80 10BV 10W, +!**, +V, 7.07 

Australia M. 93 100 “ ' " 


Australia 6V 94 100 

Belgetncrrle 7V 91 ...... 80 

Bet. r*a Autonistna 8 90 50 

CFE-Maxlco 8V 92 50 

Co*oo. Denmark SV 92 25 

Crown Zellrbch. 6V 92 UW 

Denmark 7V 91 IflO 

EIB 7V 92 100 

HIM. de France 7 82 ... TO 

ENa 8 92 44 

First fifty Fin. 8V 92 ... 25 

Manitoba 7 92 ....... .. 100 

National Pwr. Co. 8 92 30 

N'-non T »nd T. 6V 92 w 

OKB 7V 92 100 

r*«t. rinnaiiknifr 7 92 Wl 
Oat. Postepar 7V 92 ... 100 
Pfciiln fcinrrin 6V 92 ... WO 

n<iahee 7V 92 WO 

Roe. Lux. de Cnt. 8V 92 to 
Trtnaeanada Pi*»e. 7 94 100 
vonnibwn Kraft SV 92 50 


w«,ios -ov +nv a.TB 
10a ioav — ov -ov e.ia 

irm. wv +i*i +ov 7.11 

1011*101*, 0 +0V 7.78 

100V WOT, 0 -OV 8.14 
104 M*V 0 + 1 V 7.74 
102 1091, -tn, +0V 6A5 
100V 1WV “1*4 7/14— 

1«? 1I»» 4 -01, 0 6.84 

101V 102 -OV +0V 6 72 
1014. 102 +0V +0V 7,71 
107V if>»V — W, +«, 7.117 
Km* imv -«V -OV ..BJ* _ 
IflT 104V- —«v 0 t.63 

1 COV i«r»v “OV -ov 870 

iivu, +nj, +1 -7/w . 

inu 4 rnp -na, -or, art 
in* ftm, —01. +n\ t.W 

im i0*v -OV +w « wit ■*+- 

loavwav n +ftV 6-79. 
iivtv inai, -OV 0 7.7R 

101 ipil, Xflv 0 G.R9 
inpv iim, +m. +ov a 
ItKV 108V -OV +1 7 M 


Werid B-nk 8 91 100 

Average price# changes... On day — OV nn v*e*k +0V 

Change on 

YEN STRAIGHTS Issued 

Asian Oav. Bk. S>4 91 IS 
IS 
9 
IS 
20 


Int.- Ante*. Dev. 8V 91 
Japan Airlines 7V 87... 
New Zealand 8V 87 ... 
World Bank 8V 92 ... 


Average price changes.. 


Bid Offer day week Yield 
100V 101V 0 0 LOS 

102V 103V +0V +0V MS 
97V 98V +0V 0 M2 
100V 101V +QV +0V 8.03 
MOV 100V -OV +0V 8-29 
On day +0V On week +0V 


Llovds Eurofin 5V 93 ... §0V 

LTCB Japan 5V B9 0*4 

Midland Inr. Fin. 9 91... OV 
Nai. W««. Fin. SV SI... S°V 

New Zealand 5V 87 OV 

Nippon Credit 5*.i 90 ... OV 
Nordic Inr. Fin. 5*, 91. . OV 
Offshore Mining 5*, 91 OV 

PKbnnfcen S 91 0*4 

Scotland int. 5*4 92. 0*« 

Sac. Pacific 91 0» a 

Socioir Generaln 5V 95 OV 
Standard Chart. 5V 91 OV 
Sumitomo Fin. 5V 88 ... OV 

Sweden 6*4 89 0*4 

Toronto nomin’n BV 9C OV 


15.44 1R.St 
13.56 13.84 
15V 15.54 

14J94 15J» 
13JT1 13.4D 
17.13 17.** 
15.31 15.99 
17.06 17.17 
15.19 15.98 
WP B 7/10 15.56 15.69 
WV 10/8 16.08 16.14 
15V is.ro 
13 13.11 

TO 14.5? 
15V 15.R5 

«V 11.77 
15.31 15.01 


99 99V29/4 

99V 99V 16/7 
99V 99 V 30/4 
99V 99V 15/7 

rev 

**v 

9BV 

rev 

rev 
pv, 

£*», 

re*. 


rev 6 15 
res 2/6 

•mV T7/6 

re*. ?3»4 

re*!! 24 '5 

rev 1/0 
re ib/5 
rev inn*, q/s 
re «nl ifi/a 
rev res 11 /b 


Average price changes... On day 0 on week +0V 

nrvuweRTiBLE Cnv. Cnv. 

BftNDR date price 

Aline mots 5*4 96 7/BI 333 

Bow Valley Inv. 8 95 ... 4/81 23.12 
'Bridgestone "TinTpg '96*37R2 470 

Canon BV 95 1/BI 829 

Daiwa Secs. 5V 96 120515133 

Fujitsu Fsnwe 4V 96 10/81 5641 

Fu rule awn Elec. 5V 96... 7/81 300 
Hanson O/S Fin.' 9V 96 8/81 1.76 

Hitachi Cable SV 98. 2/32 SIS 

Hitachi Cred. Con. 5 56 7/81 1612 
Honda Motor 5V 97 ... 3/82 841 

inchcape 8 95 2/81 4.55 

Kawasaki 5V re 9/81 229 

MahlF 6 96 7/81M6.4 

Minolta Camara' 5 96... 10 mi 825.4 


13J1 13.ag 
IS 1S.OT 
15 31 15.43 
16 s , 16.44 


Pnm 

10.16 

52.57 

0.13 


Minorco SV 97 


Chg. 

Bid Offnr dov 
P4 95*, +1V 
96*, 9B*4 — t’ r 
89V POV +2*4 
BO 92 t-F, 16.34 
t63 65 +0** —2.93 

95V 97V +4*, 19^1 
98 99S, +7*4 l«f9 

W 85 0 -7.12 

86V 88V +4*» 3J9 
84V 85*4+7 
89V S1V +3V 
t63 641, 0 

7ZV 73V -OV 
98 99V +1V 

62' 63*, +0V 


Mura tn 5 *. 36 7/81 216 S 

NKK B*» 98 .7 .7/81 188 

Nippon Chami-C. S 91..J0/81 919 
Nippon Eieciric BV-S7.-., 2/82 846 
Orlont Finance ,5V 47 ... 3/B2 1205 

Sanyo- Electric B »: 10/81 S5Z 

Sumitomo E<bc. 5*2 97... 3/82577.3 
Sumitomo Mat. 5V 96.. ,10/81 296.1 
Swiss Bk. Cpn. GV 90... B/M 191 
Konixhiroku 6 90 DM ... 2/82 58S 99V H® 1 * +0V 


12.01 
■5 .65 
25.S1 
389 

”.1 £ 

24.04 

10.F-* 

60 61V -IV 23.63 

IP, 89V +3V -735 

56V 58V “2 0-1-1 

89V W'l +2V 7-83 

95 Sfii, +3’« 10.5? 
76V +7V 21.58 
91V +B 9J0 
65** -IV 11-22 
75 -OV 


5/82 8.10 *tP6V 87 +1 
61V -IV 


75V 

90V 

BSV 

73 


f— MitBtibfsbi'H.-*-»-DM-2/aa 263 -95 96 


18.14 

3.B8 

13J53 


• No Information available— previous day’s prfta. 

' t 'On rirtm^rwarlrBr maker supplied £ pnea. 
Strahtht Bonds: The vioid Is the yield to redemption of lha 

^rwid-pricar thflamo unt is sued is In millions ol currency 

units oxeipt ffir Yen bonds where it ri In bllfiORa. 
Chance on w»ek = Chanoa over ptico a week earlier. 

• Flooti Op. Rote N o t es ; -Psnorwinated in- dollars unit's other- 
wise Indicated. Coupon shown ig minimum. C .die = Date 
ne xt coupon ba comaa affective. Spresd=Marain above 
*■— s^*-TW7irth— uff8 i rad -Taw" , /fr thrae-manch; $ above moan 
rate) for U.S. dollars.- ,C.cpn“The cur/ejnt . coupon. 
C.vld =The current yield. 

Conyertfbfe Ronds: Dennmfn!ned in rfotlars unlesg othnr- 
wi*a thificate'rf. ' Cha, dav^Changa on day. Cnv. dato = 
First date lor conversion into ahBros, Cnv. price™ 
Nominal amount of bond per share exorwsad in 
currency of chare at conversion rate fixed at issue. 
Pram = Perceninqe_ premium of the currant otfedf’v* pr»«a 
of acquiring shares via* the bond over tho most recent 
price of the aharas- 

"tiw Financial TlmesTluLl 1982. Reproduction m whole 
or In part In any form not per mined without written 
consent. Date supplied by DATASTREam international. 


28 


Financial Times Tuesday/ April 27 


and Markets 


INTERNATIONAL COMPANIES and FINANCE 




f'V 


Peter Montagnon looks behind the financing of developing countries | German 


The dangers of short-term debt 


FEW QUESTIONS have taxed 
the minds of international 
bankers so continuously over 
the past few years as the 
creditworthiness of developing 
countries. 

Their nervousness is all the 
more understandable wizen one 
remembers that the total debt 
of non-oil developing countries 
amounts to about $52obn. 
According to recent estimates 
by Bankers Trust, the nine 
largest U.S. banks have lent 
almost twice their capital and 
reserves to six of the largest 
developing country borrowers — 
Brazil, Mexico, Korea, Argen- 
tina, the Philippines, and 
Taiwan. 

Yet the question nobody 
seems able to answer is whether 
this debt does actually contain 
the germ of a major financial 
catastrophe. Few bankers can 
easily explain why it is that 
some countries run into finan- 
cial difficulties, while others 
happily continue to borrow 
ever larger amounts of cash. 

When Zaire ran into debt 
problems its debt service ratio 
was little more than 10 per 
cent; yet Brazil is still able to 
borrow with a debt service 
ratio of about 60 per cent, 

A study by Amex Bazik has 
attempted to explain this prob- 
lem. In doing so, the bank has 
introduced some disturbing in- 
sights into developing country 
finances by adding the mass of 
largely uncharted short-term 
debt into the equation. 

Conventional analyses of de- 
veloping country debt concen- 
trate on the debt service ratio 
which is the relationship of 
service payments on medium- 
and long-term debt to visible 


TWO DEBT SERVICE BURDENS 
{for both puMc and private sector borrowers) 

USSbnion 

BANK FLOWS MBXUM and LONG 1B1 

IS) (AH maturities (All creditors, data as 


IFtepsymenis 


120 

So* 

SO ■SOURCES® 


US*M 

MHHUM and LONG lOftA DEBT 
(Ail eredi toes, data as used 
an teSfional 
■ de bt service ratios) 
gjjB Amoftizaficn 


I ~l interest 


SOURCSWHU BAMC 


1978 1979 1980 1981 1978 1979 1980 1981 


export receipts. 

Amex Bank has sought to 
flesh out this approach by. look- 
ing at these countries’ total 
cash flow relationship with in- 
ternational. banks. In brief, it 
concludes that they face a much 
more onerous debt service bur- 
den than normally supposed; 
short-term • borrowing has' be- 
come much more prevalent and 
net transfers by banks to de- 
veloping countries, which 
amounted to $25bn in 1977, all 
but ceased last year. 

Last year, it says, total debt 
service payments by developing 
countries probably amounted to 
about $175bn. Yet normally 
quoted figures, which include 
only payments on medium- and 
long-term debt,, show a total of 


only $&)bn- 

On a traditional yardstick 
their debt service ratio rose only 
slightly to 19 per cent from 16 
per cent in the five years 1977 
to 1981. The fuller picture 
which emerges after in elusion 
of short-term debt mid invisible 
export .earnings shows that debt 
service payments aotuaUy took 
about half their current account 
balance of payments receipts 
last year compared with less 
than one third in 1977, Amex 
says in its latest Amex Bank 
Review. 

The bank also offers some 
other figures that underline the 
scale of short-term borrowing 
by developing countries since 
they began to prefinance more 
and more of their export sales. 


Last year, developing 
countries were’ due to repay | 
about $122bn in credits raised 1 
82 m commercial banks, it says. 
Yet only about $l7bn of this 
represented medium-term debt 1 

In the nest few yean, the 
debt repayment burden is likely 
to increase because eurocredits 
since 1978 have increasingly ! 
been on shorter maturities, 
Amex Bank says. 

Normally speaking, economists 
tend to play down the import- 
ance of short-term borrowing 
by developing countries because 
much of it is automatically 
repaid as payments come in for 
exports which have been 
financed In this way. 

Yet Amex Bank says that it is 
in the short-term credit area 
where most debt problems 
eventually arise— either because 
of a sudden lack of confidence 
among lenders or because an 
excessive use of short-term debt 
leads to a bunching of repay- 
ments. 

As a result developing 
countries face a critical task of 
cash-flow management, it says. 
Failure to meet this challenge 
may well explain why some 
countries are forced into 
rescheduling even while their 
traditional debt service ratio is * 
rather low. 

Last year developing countries 
received $145 ^bn in new credits 
and. interest payments from . 
commercial banks. But they 
paid back $144. 7bn in debt 
repayments and interest 
charges. 

With figures as close to 
balance as this, there is little 
leeway left to cope with 
unexpected political and 
economic shocks. 


NEW ISSUE 


7he Notes have not beoi registered under the United States Securities Act qf 1933 andmaynotbe 
offered or soldm the United States of America or to nationals or residents thereof. 

These Notes having been sold, this amumcetaent appears as a matter qfrecardantf. 


APRIL 1982 


U.S. $50,000,000 


Transco International N.V. 


(Incorporated in tke Netherlands Antilles) 


15%% Guaranteed Notes Due 1987 


With Warrants to Purchase U.S. $100,000,000 
15%% Guaranteed Notes Due 1987 


Unconditionally guaranteed as to payment of 
principal, premium (if any) and interest by 



Transco Companies, Inc. 


( lacorparatedvi Delaware) 


Credit Suisse First Boston Limited 


Merrill Lynch International & Co. 


LazardFr&res & Co. 


Banque Bruxelles Lambert S. A. 


Manufacturers Hanover Limited 


J. Henry Schroder Wagg & Co. Swiss Bank Cor porati on International 


Union Bank of Switzerland (Securities) limited 


AUof 


NEW ISSUE 


April 13, 1982 


U.S. $150,000,000 
Beneficial Overseas Finance N.V. 


Zero Coupon Notes Doe February 10, 1990 

oe at Homer’s Option on February io , 1987 ai 67.20% 


rWCOIiDITIOKiLLY GUiBANTEED AS TO PA1MEJT BY 


Beneficial Corporation 


Blyfcfr Eastman Paine Webber 

ktsmlindZUBl 


MemQ I^nch International & Co. 


Amr fi Tn jBHi a ti ma l lMri 


Ban^BrusdksLainbertSA. 


Banque deFIndodmie et de Sues 


Banqoe Natiooale de Paris 


Barclays Bank Group 


Commerzbank 

■ AifiBHi t nift e fl aB 


European Banking Company 

Xixstted 


Kuwait Foreign Trading Contracting 
& Investment Co. (SA JL) 


Soeiete Generate de Banque SJL 







Brown 
Boveri 
cuts payout 


BNP boosts 




•-T-- ASf- 

l - '«• ■ 


- 


0 


BY TERRY DOOSWOKTH IN PARK 


By Kevin Done m Frankfurt 


BROWN BOVERI of West Ger- 
many, the 56 per cent-owned 
subsidiary of the Swiss electri- 
cal engineering group, has bene- 
forced to cut its ’dividend 25 
per cent to DM 6 per share be- 
cause of the continuing sharp 
fall in profits. 

Group after-tax profits toll by 
25 per cent in 1980. Last year's 
results — • to be released later 
this week — are expected to 
show a further steep decline, 
despite a 17 per cent rise in 
turnover to DM 4.7bn. 

The company has been hit by 
the rising cost of raw maerials 
and labour, which it has been 
unable to pass on. At the same 
time, certain business sectors 
have been working well below 
capacity levels. 

Sales in the domestic market 
bave been hit by the continu- 
ing recession in the West 
German market and virtually 
stagnated in 1981 with a nomi- 
nal rise of only 6 per cent 

Foreign sales rose by 32 per 
cent last year, however, and 
accounted for 47 per cent of 
group turnover compared with 
42 per cent in 1980. 


BANQUE Nationale de Paris', 
largest of the French nation- 
alised banks, raised consoli- 
dated profits last year by 30 per 
cent from FFr 8SSm to 
FFr l-2bn. ($194m). 

The figures show that BNP 
has continued with the strong 
recovery which began in 1980. 
when profits increased by 54 
per cent The balance sheet, 
which includes all the com- 
panies in which BNP has more 
than a 49 per cent stake, also 
expanded sharply, going up 
25 per cent to FFr 613bn. 


At the parent company level, 
however. BNP registered * a 
slight drop' in profits, which fell 
2 per cent to FFr 591m, These 
results echoed a similar pei> 
formance from Credit Lyonnais; 
the second largest' of the 
nationalised group, which saw 
earnings drop to FFr 469m from 
FFr 476m. ■ 

To some extent the parent 
company setback reflected, the 
exceptional taxes levied- tin the 
banks last yeaiv-BNP paid 
FFr Sl8m. Normal' tax 
accounted for FFr 637m, while 


the bank set aside:.. anotitet 
FFr S^bn in provisions ~aga&a''' 
dubious loanAi ■ 

- The parent company btiaoe? , 
sheet- rose 22. per .xent- to 
FFr 552bn, while' de^wits Toss , 
8.6 per cent and toax&SS&jfc 
cent ' . 

It is not dear, : 

the pattern of ' BNP’s rtsalli : 
will bfi followed 
~ French hauls.- -.-But c. 
Indications are. . r S»a£. .aaost 
French banks isete aSsiolreiri®y v 
. dependent bn overseas eartdW 
for their 1981 profit*-- W--- -. -. 


■ ' i 

\ ' ■ ' 
k- • • 


Pernod-Ricard acquires 
fruit treatment group 


Norwegian 


BY OUR PARC STAFF 


Schering to sell 
subsidiary 


By Leslie Cotrfct in Berlin 


PERNOD-RICARD, market 
leader in the French drinks 
business, has bought control of 
SIAS-MPA, a fruit treatment 
company which is claimed. to be 
the leading world processor of 
fruit for the yoghurt and ice 
cream industries. 

Full details of the agreement 
were not available last night. 
But the acquisition is expected 
to cost Pernod about FFr 60m 
lS9.7m). The stake has been 
bought from Lafarge-Cqppee, . 
the cement group, which' 
recently took over SLAS-MPA’s 
parent company as part of rts 
diversification into bio- 


technology. 

Pernod-Ricard said the deal 
fell within its strategy of 
diversifying overseas and away 
from the alcoholic drinks 
business. It has recently bought 
a number of soft drinks interests 
in France. 

About two-thirds of SIAS’s 
FFr 300m turnover Is generated 
overseas, while 196 of its 350 
workforce are based outside 
France. The company has two 
factories in France, one in West 
Germany, and two in the U.S, 
It is due to open S further unit 
in Mexico in the course of this 
year. 


cuts losses 


fey Pay Gjester in Oslo 


SCHERING. the West German 
pharmaceutical and chemicals 
group, plans to sell its sub- 
sidiary, Isar - Rakoll - Chemie 
(IRC) of Munich, to H. B. 
Fuller of the U.S. 

IRC ' produces industrial 
adhesives for the shoe, wood 
products and construction 
industries. It had a turnover of 
DM170m last year, and is said 
to be one of the largest com- 
panies in its field in Europe. 

Fuller make adhesives, waxes, 
hot melts and sealing com- 
pounds. It has production farili- 
-ties in West Germany, France, 
the .UK and Scandinavia. 

Schering said IRC no longer 
fitted in its overall company 
strategy, although it is profit- 
able. 


UBS sees slow growth 


BY OUR FINANCIAL STAFF 


UNION Bank of Switzerland, 
the major Swiss bank, expects 
balance sheet growth to 
“develop at a slow pace” in the 
second quarter of 19S2, 
although earnings will remain 
satisfactory. 

Total assets declined by 
about SwFr 500m to 
SwFr 93.3bn in the first 
quarter. The doHar exchange 
rate and the price of gold bad 
moved in opposite directions, 
“neutralising” the impact of 
each on assets, said the bank. 

Balances due remained un- 


changed whale . balances to 
banks had declined by 3bout 
SwFr lbn. 

Non-bank deposits bad risen 
to SwFr 55.4bn. Demand 
deposits had suffered a 
decrease of SwFr I.7bn but 
the aim was offset by a rise of 
SwFr 1.9bn in time deposits. 

Savings had stagnated but 
deposits grew by SwFr I51m 
which the bank said, “seems to 
have been ' partially ' due to 
parked funds" as a result of 
the conditions of world stock 
markets. - - 


AKER, the NorWe^ac stop- - 
building and. offshore • 

ing group, “ reports ^reduced - 
losses for 1981. But the grot® 
is increasingly : TyqsriifGastic 
about its prospects.- New oE- 
shore fabricating cbheraots . 
have -either been , defined:. «r 

lost to foreign yardiu. ‘ - 

AKER also' f<»:esee&v&wreas- 
ing competition bn- tiie vwld 
shipbuilding, ' 

heavy' engineering industry is 1 
• “ losing, ground in both.: toe - 
shipbuilding and N<ftth- Sear . 
platform . fabrication _ markets 
as a result of competition add 
“better subsidy arrangement" 
at foreign yards, says toe: 
group. .17’“:: * 

Group . turnover, in- • 1981.- 
reacbed NKr 3.$2biv compared 
with NKr 2J28bo, and operating 
profits wos®. NKs\ 20.9qi after 
depreciation compared -with loss 
of NKr 4Jfao. Net financial costs 
were tower , sp : - befee-' extra- 
ordinary, itens. and tax. Hie 
deficit wax NRr. BOm, • compared 
with NKr 117.5m. • For toe. 
eighth year rmupng ncMEfridesd 
is being paid, x* ’ v‘:' -i:': 

Much of toe fol- 

lowed the gradual run down of 
activities . at ltfylaxwsV'etksted, 
the group’s Os& shgj and plat- 
form :budl*' :i “ 


Thi8adcerti9eme7d<xmipUe8imtktherequirementscftheCouncUofTheStockE&hangeinLondarL 
It does TiatconstUute an offer of, or invitation to subscribe fitr or purchase, any securities.- 


UNION 


CARBIDE 


U.S-. $150,000,000 

Union Carbide Overseas 
Finance Corporation NY. 


(Incorporated in the Netherlands Antilles) 


m% GUARANTEED NOTES DUE 1989 


Paymeid of principal and intoned 
unconditionally guaranteed by 


UNION CARBIDE CORPORATION 


(Incorporated iaNem York, United States of America) 


The syndicate mcmagedby the (bUomnghas agreed topurchase&e Notes: 


MORGAN STANLEY INTERNATIONAL 


C OMMERZRA T fK A ETTF. NCPRSiETJSlfTUA F T 


COUNTY BANK 

Limited 


CREDIT SUISSE FIRST BOSTON 
Limited 


DEUTSCHE BANKAKTIENGESELLSCHAFT 


MORGAN GRENFELL & CO. 
L i m ite d 


MORGAN GUARANTY IffD 


SWISS BANK CORPORATION INTERNATIONAL 

Limited 


UMONBANK OF SWITZERLAND (SECURITIES! 

Limited 


The Notes, in the denominations ofUJ5.$l,000 or US$10,000 each, with an issue price of 100 per cent, have been 
admitted to the Official List by the Council of The Stock Exchange, subject only to the issue of the temporary Note. 
Diterest is payable arinuady in arrears on May 2, cornmeTicuifronMqy 1,1983. 


Particulars ofthelssuer, the Guarantor andtheNotesare an atid h leintheExtel Statistical Services Limited txnd may he 
obtained during normal business hours an any weekday (Saturdays excepted) up to aruLineluding Mery II, 1982 -from 
the brokers to the issue: . 


April 27, 1382 


CfBenace&Co., 
12, Tokenkouse Yard, 
London EC2R7AN 


Panmure Gordon & Co., 


9,MoorfieldsHighwalk, 
London EC2Y9DS 


Ishikawajima-Harima 
Heavy Industries Co. Ltd. 


U.S. $50,000,000 Guaranteed 
Floating Rate Notes Due 1985 


For the six months 

April 27th, 1982 to October 27th, 1982 


in accordance with the provisions of the Note, notice is 
hereby given that the rate of interest has been fixed at 
15a per cent and that the interest payable on the 
relevant interest payment date. October 27th, 1982, 
against Coupon No. 9 wfll be UJS. $78.16. 


By: Morgan Guaranty TnisLCompariy of Ne» York, LoDdflB 
AgfflJtBartfr • 


Bank of Tokyo (Curasao) Holding NY 


. uss50.ooo^ao 

GUARANTEED FLOATING RATE NOTES DUE 198? 


Payment of the principal of, and interest on, the Notes 
is uncofldirianaily and irrevocably guaranteed by. - _ 


The Bank ofTokyo, Ltd. 


In accordance with die provisions dfthe Agency Aoreement-b«tw«n 
Bank of Tokyo (Curasao) Holding N.V., The Bank of Tokyo, Ltd J 
and Citibank, N.A, dated October 23, 1 $79,- notice Is hereby ^iveh 
that the Rate of Interest has been fixed at T5;{ e % pa and that the; 
interest payable on the relevant Interest Payment Date, July. 27*.; 
1982, against Coupon Nq. U will be US.S1 93.53. ■ 


.\ii!:<P 

e;irn^ 


5- 


WARM 






ftiMrr-MT 



b 





.' ; . ,rv -esi 

l<)$ 






Financial Times Tuesday April 27 1982 

Companies 
and Markets 


INTL. COMPANIES & FINANCE 


HK$1.6BN STOCK MARKET RAID 


HK Land buys 20% of HK Electric 


BY ROBERT COTTRELL IN HONG KONG 


A CONSORTIUM Jed by Hong- 
kong Land yesterday bought 
approximately 20 per cent of the 
issued shares and share ’war- 
rants in Hongkong Electric 
Holdings for an estimated 
HKSLBbn (U.S.8275m). Addi- 
tional purchases are planned 
today. 

The buying was done in a day- . 
long market operation by 
Jardinc Fleming, which an- 
nounced shortly after the Hong 
Kong markets opened that it 
was seeking the 222m shares' 
*1 up to HKS6.75 each, and the 
I2m warrants at up to HKS0.4O 
each. Electric successfully re- 
quested a suspension of its. 
quote after learning of the 
raid, but the suspension lapsed 
in the course of the day and. 
by evening Jardine announced 
that it had obtained the shares 
at prices of ‘ between HKSS.30 
and HK56.7S each. It says it will 
be buying more shares today, 
but not to the extent, that Its 
clients breach the 35 per cent 


bidding which triggers a full 
bid under the Hong Kong take- 
over code. It is not known how 
many Electric shares the pur- 
chasing consortium held before 
today’s buying. Prior to the bid, 
the shares had closed over the 
weekend at HKS5.15. 

Hongkong Land is one of the 
world's largest property com- 
panies. It recently reported 
1981 profits of HK$1.43bn, and 
it already owns 34 per cent of 
another local utility, Hongkong 
Telephone Company, which it 
bought between December and 
^February last. Its partners in 
the consortium have not been 
named, but it is believed here 
that the fast-growing Carrian 
Group, which is already in other 
joint projects with Land, is 
involved in the Electric pur- 
chase. Comment was not avail- 
able from Carrian yesterday. 

Electric is one of Hong Kong’s 
two power utilities. It covers 
Ih e Hong Kong and Lamma 
islands, while China Light and 


Power covers tbe mainland ter- 
ritory including Kowloon. Elec- 
tric saw net profits in 1981 of 
HKSfin.lm, and paid dividends 
of 29 cents. Land's HKS8.75 top 
price thus represents a price/ 
earnings ratio of 12.5 on Elec- 
tric’s s’ated earnings. Electric's 
earnings from power generation 
and supply are controlled by 
agreement with ihe government, 
which sets a rate of return on 
net fixed assets. 

Electric's subsidiary activities 
include electrical appliance 
sales. engineering. project 
management, and property. In 
1980 it floated jointly with 
Cheung Kong (Holdings') a new 
property company. International 
City Holdings, to which it sold 
sites worth HK$2.1bn, and m 
which it took a one-third share- 
holding. 

The Land-led raid has left the 
local markets puzzled on a 
number of points: why Land 
should want a large but still 
minority stake in a power com- 


pany: who its partners are. and 
why it should need them: and 
why the raid should have been 
complicated by the share 
suspension. 

“Land is really being quite 
aggressive at a phase in the 
market which suits it," says Mr 
Ed Latnond of W. I. Carr i Over- 
seas) , pointing to Land's large 
solid recurrent rental income 
which It can afford - to spend 
while rivals are financing new 
and unsold projects Tor sale at 
prices which look potentially 
less attractive. Land is now 
paying a premium of around a 
third over the preceding market 
price for its electric shares. The 
market has been generally 
depressed, though some believe 
it may now be coming off the 
bottom. 

• The Land offer helped the 
Hong Kong markets to register 
their strongest gain of recent 
weeks. In relatively heavy 
trading, the Hang Seng Index 
closed 43.43 points up at 1279.27. 


Advance in 

Amaprop 

earnings 

By Thomas Sparks 
in Johannesburg 

ANGLO AMERICAN PROPER- 
TIES (AMAPROP) the South 
African property company, in- 
creased pre-tax profit to RIT.Sm 
(S16.9m) in the year to March 
31. from R5.4m_ 

The figures are not strictly 
comparable, since Amaprop 
merged with Soroc, another 
property company in the Anglo- 
American group, on January 1. 
1981. 

New' developments during the 
past financial year included a. 
parking and retail complex in 
central Durban, the construc- 
tion of a major office block near 
the Johannesburg stock ex- 
change. and other major 
rebuilding and conversion pro- 
jects in central Johannesburg. 

A total dividend of 14 cents 
has been declared from earn- 
ings of 22.5 cents a share. 


San Miguel reports first 
downturn in a decade 


BY EMILIA TAGAZA IN MANILA 


SAN MIGUEL, the Philippines’ 
largest food and manufacturing 
concern, has announced its first 
downturn in profits for a 
i decade. Net income amounted. 
j to 283m pesos (US534m>, 22 
per cent down 

The company attributes the 
decline to tight market condi- 
tions which prevented the com- 
pany from raising prices of 
some of its products to compen- 
sate fully for the continuing 
rise in production and operating 
costs. 

The company reports that- 
beer sales, which account for 
about 30 per - cent of San 
Miguel's total revenue, declined 
although it did not disclose the 
beer sales volume. Sales of 
other products, including glass 
containers, corrugated board, 
plastic crates and metal 
closures, increased but produc- 


tion volumes of these items 
were below the company's 
expectations. 

Sales increased only 5 per 
cent to 5.4bn pesos <$644m) 
from 1980’s 5.1bn pesos. This 
was the lowest growth rate in 
10 years. Meanwhile, operating 
costs rose almost 10 per cent 
to 4_5bn pesos. 

Mr Andres Soriano, the chief 
executive, and Mr Ernest Kahn, 
the president, do not expect 
material improvement in either 
the Philippine economy or in 
their company’s performance 
this year. 

• Rising costs, tough competi- 
tion from imported tyres, and 
stagnant tyre prices have 
pushed down Sjme Darby Inter- 
national Tire’s 1981 net income 
to 28,5m pesos ($3.4m). 18 per 
cent less than 1980's profit of 
35-lm pesos. 


Clal profit 
growth ahead 
of inflation 

By 1_ Daniel In Tel Aviv 

CLAL, the Israeli investment 
company which controls 170 
concerns in the fields of 
industry, real estate and com- 
merce and services, increased 
group net profit last year by 150 
per cent to Shi 702m ($35m). 

This compares with a rate of 
inflation last year of 103 per 
cent. 

• The balance sheet total of 
Shi 8.64bn (S430m) represented 
a gain of 157 per cent. 

Tbe cash dividend is un- 
changed, at 2l) per cent, and 
there is also lu be a one-for-one 
scrip issue, as foT 1980. 

The Israel Discount Bank and 
Bank Hapoafim hold 60 per cent 
of the capital of Clal. and the 
public 40 per cent. 

One of the subsidiaries, Clal 
Electronics, is to float a $10m 
issue on the U.S. capital market. 


WARM WEATHER HITS CLOTHING SALES 


Slowdown for Japanese supermarket chains 


BY YOKO SHIBATA IN TOKYO 

JAPAN'S SIX big supermarket 
chain store operators reported 
slower growth in earnings in the 
fiscal yeaf ended February 28, 
1982. They blame weakened 
consumer spending and warm 
winter weather. 

Most of the supermarket 
companies saw sales growth 
comparable to that o£ the 
previous year. Ito-Yokado and 
Jusco managed to report double 
digit growth in sales, thanks to 
rapid expansion of their sales 
areas. 

Jusco performed well and took 
over the third position in terms 
of turnover from Seiyu Store. 
But in the current fiscal year 
ending February 1983. Jusco 
expects slower growth in sales 
because the number of new 
premises allowed to open will 
be limited by the Government’s 
rigid restrictions on the opening 


RESULTS FOR 1981-82 


Daiei 

Ho-Yokada 
Jusco 
Seiyu 
Nlcbii - 
Uny 


Sales 

Ybn 

Change Operating Change 
on-year • profits on year 
% Ybn % 

Net 

profits 

Ybn 

Change 

T 

1,216,1 

+73 

21.0 

+5.0 

93 

+33 

7643 

+10.4 

24.6 

+7.0 

12.1 

+33 

609.5 

+10.1 

163 

+ 11.1 

8.6 

+63 

607.1 

+85 

8.0 

+24.6 

33 

+03 

490.9 

+73 

14J 

+7.4 

73 

+33 

3573 

+73 ■ 

13.1 

+8.8 

63 

+ 163 


of big new stores. To cope with 
this restriction, Jusco plans to 
open 70-80 convenience stores 
this year in metropolitan areas. 
Jusco's operating profits are 
projected at Y17.6bn ($72.4m). 
up 8.2 per cent, on sales of 
Y660bn ($2.7bn), up 8.3 per 
cent- # 

Seiyu reported the biggest 
gain in operating profits (up 
by 25 per cent) among tbe six 
companies, despite lower gross 


margin profits caused by slug- 
gish clothing sales. . Exchange 
gains on redemption of a 
foreign currency-denominated 
convertible debenture, and 
lower financial costs helped by 
lower interest rates led to a 
large gain in operating profits. 

In the current fiscal year 
ending February 1983, Seiyu 
expects its operating profits to 
reach Y17.6bn. up 8 per cent 
on sales of Y660m. up 8 per cent 


over the previous year. 

Nichii’s sales of Y3bn were, 
short of the original target, due 
to. sluggish clothing sales. 
However, an increase in non- 
operating profits by Y2.4bn. 
including exchange gains total- 
ling Y500tn on a Swiss franc 
convertible debenture, resulted 
in satisfactory earnings. Nichii 
expects operating profits for the 
current financial year to rise 
9 per cent to reach YIBbn, on 
sales of Y525bn, up by 7 per 
cent over the previous year. 

Uny showed sound growth in 
sales and operating profits 
which improved its financial 
standing. In the current fiscal 
year ending February 1983, Uny 
expects sales to advance to 
Y3B4bn, up 7 per cent, with 
three new stores due to open 
Uny’s operating profits are pro- 
jected at Y14£bn, u-p 8 per cent 
over the previous year. 1 



Banco de Chile 

Short-term Notes issued in series 
under a 

U.S. $5 0,000,000 Note Issuance Facility 
1982-1989 


Morgan Geabazot Lid 


Banco Real SjL 


Banco Diagonal de Mexico, SJL 

■ BAXAME2C. 

Bank of Tokyo In ternat ional Limited Chemical Bank International Group 
Continental Illinois Limited Manufactdress Handter Limited 

Saudi International Bank Sumitomo Rxance International 

AttafcAi-s T rust Finance (Hong Kong) Limited 


Agent: 

Morgan Guaranty Led 


T&seaiiotauxauateppeenaavuaurofTecaidaBly. 


29 


The Advertisement appears asa matterof reconi only 



SAUDI OGER LIMITED 
Saudi Riyals 157,958,750 

GUARANTEE FACILITY 

IN CONNECTION WITH 

CONSTRUCTION AND FURNISHING OF THE 
EXTENSION TO GOVERNMENT ADMINISTRATIVE 
COMPLEX IN THE EASTERN PROVINCE 

ARRANGED AND MANAGED BY: 

ARAB BANK LIMITED 


ISSUED BY: 

ARAB NATIONAL BANK— RIYADH 



ApH 1982 


J 



30 seconds 
is a long 
time in a 
dealing room 

The new Reuter Money 
Dealing Service gives you, on 
your Reuter screen, dealer-to- 
dealer contact within four 
seconds. 

But if you use telephone or 
telex, it may take you 30 
seconds to get through. On an 
active day Cable may then have ’ 
moved 1 8 points; and on a 
£1 million deal that could have 
cost $1800. 

The Reuter Money Dealing 
Service, launched on 23 
February 1 981 , already links 
more than 200 banks in 26 
business centres: 

London - New York -Boston 

- Chicago - Detroit - Toronto - 
Amsterdam - Rotterdam - 
Brussels - Luxembourg - Paris 

- Zurich - Geneva - Lugano - 
Lausanne - Frankfurt - 
Dusseldorf - Stuttgart - 
Munich - Hamburg - Bochum - 
Vienna - Helsinki - Oslo - 
Dublin - Milan. 

Other countries will be on 
line shortly, including centres In 
the Middle East and Far East. " 




1 



J 


* A n a 
.... « 



World markmtm am thmytnova 


To: Tbe Market Manager; Dealing. 

Reuters Ltd 
85 Fleet Street 
London EG4P4AJ 

□ Please send me further information on the 
Reuter Money Dealing Service 

□ Please arrange for me to attend a 
demonstration 


Name 


Position 


Campanv/lnslitutton 


Address 


"telephone number 


FT- 


i 





30 




aid Market* 


WORLD STOCK MARKETS 


Financial Times Tuesday April 27 L982 ^-V--r ' . 






*CF industries. 37 


Columbia G«^_ 32 553a 

Columbia P.ct,_ 70% 70T a 

Combined Int [ 2i% 2i% 

Cowbustn. Eng-J 257* 26% 

OiHWitluEditonJ S2U 33 
COM)*wSata!iia_! 66% 63 Sg 


fit. At). Pac. Tea. 6 
Gt- Basins Pot. .. 3 

GtNthn. Nekoosaj 36&s 
Gt. west Fisa neO 1IH 

Greyhound. 14 

Grumman-... J 26*a 

Gulf a Wes ton _4 154 



?lff] 







Alegheny Intl—.J 29 is 1 29a* 

Allied Corp 344 j 334 

Allied Stores^™-! 3i% 31 

Allis-Chalmert -- 14S* 144 

Alpha Portd , 10% 10a* 


Comp. sdanoe._{ 114 

Cone Mills. i 304 

Gonrac : 364 

Cons. Edison I 38% 

Cons. Foods. j 3* 

Cons. Freight | 393s 

Con. Nat. Gas .... -1 474 
ConsumorPower, 17s* 
Cont, Air Lines. J 44 

Conti. Corp. I 283s 

Conti. Group > 50 

Cont. Illinois. ^.i 297s 

Conti. Tolep 17 

Control Dot* 303s 


Alcoa | 

Amal. Sugar .. ..'.-1 

Amax , 

Amdahl Corp 

Amerada Hess .— 1 

Am. Airlines 

Am. Brands- 1 

Am. Broadcast's; 

Am. Gan j 

Am. Cyanamld...i 
Am. Elect. PowrJ 


Am. Express 1 

Am. Con. insnee. 


Am. Hoist ft Dk...! 
Am. Homo ProdJ 
Am. Hosp. Suppy! 
Am. Mod I cal Inti . 

Am. Motors i 

Am. Nat. Reseat; 

A m.Patflna. I 

A m- OuwsAr Pot-.i 


344 ; 24% 
464 ' 464 
87s* 26 Sh 

19 4 19?* 

20 204 

14% 137a 

4558 1 423* 
35Sb | 363* 

aa > 274 

377g I 273* 

ia% [ M!* 

495, 494, 

421* 424 
144 14 

38 57 

444 435a 

837* 83 

37* 4 

344 I 54 
614 614 

10 | 10 


Cooper Inds. ! 37% 

Coors Adolph j 125, 

Copperwald 25->i 

Coming Glass ■ 46% 

Corroon Black.... 205, 
Cox Broadcast's-' 5ll s 

Crane ...1 274 

Crocker Nat...— 29% 
Crown Cork...— .i 24% 

Crown Zell 23 

Cummins Eng..J 39 
Cu rtise- Wright _[ 395, 

Denton I 8 

Dane - | 263, 

Dart ft Kraft..— J 02*, 

rw. r.. 1 XCU 


Gulf Oil 1 

Hail< FBI ! 

Halliburton | 

Hammormfii Ppri 

Handle man 1 

Hanna Mining..„j 
Har court Braes.. 

Harris Bancp : 

Harris Corp .... — 1 

Harseo 

Heeia Mining*...; 

Heinz! HJ) „• 

Heller Inti ...J 

Hercules ■* , 

Harshey - 

Heublein * 

Hewlett Pkd 1 

Hilton Hotels 

Hitachi j 


■mm 


IS 

W *1 

'I 1 '*'! 11 !. 11 

t£ 

B 


■:p^t 

j ffiT . 


64 lo 1 624 


Sohlitz Brew «...! 
Schlumbeger-...| 

SCMh 1 

Scott Paper 

Seaoon I 

Seagram ,. 

Sealed Power — 

Searte (GDI _j 

Sears Roebuak— j 

Security Pac j 

Sedco - 

Shell Oil I 

Shell Trans — 

Sherwln-Wms. 

Signal 

Sfgnode T 


16 % 161 * 
474 447* 

22 '* 21 % 
17% 163* 

244 244 
63% 531* 

28 agt* 

36 1* 365* 

20 . 20 
35% 34% 

31% 314 
367* 36% 

39 28% 

33% 231* 

304 20% 

49% t 494 


f! 


1 


m 


1 TOP 


19 1* 1 18% 


Holiday Inna 1 

Holiy Sugar I 

Homestake 

Honeywell. 
Hoover 


Hoover Uni j 

Hormol Geo.v..J 


Data Gen ! 34<* 

Dayton-Kudaon 34 

Deere. .... .J 354 

Delta Air 315* 

Danny’s.. ; 24 is 


Hospital Corp.../ 
Household Inti...' 
Houston lnd 3 . ....] 
Hudson Bay Megi 

Hughes Tool j 

Humana^ 


264 < 261, 
444 ; 45 1 3 
25 >2 . 24% 
69% 684 

97 B 9% 

17% 174 

24% 241c 

334 53 

184 17% 

194 ; 194 
145* 145* 

27 26% 

25% 254 




Simplicity PatU.1 7% 

Singer j 144 

Skyline ...— .——i 157* 

smith Inti 293, 

Smith Kline Bede 70% 
Sonesta Int) .— .! 104 

Sony J 144 

Southeast Banks! 154 

Sth. Cal. Edison- 1 524 

Southern Co. 15% 

Sthn. Nat Res.. J 24 
Sthn. N. Eng. Tel, 1 *5, 

Sthn Pacific > 34% 

Sthn. Railway — .1 90% 

RnirthliinW I 39 


Southland 

SW Bannhares^i 843*. 

Sperry Corp. 28T* 

Spring Wills J 26a* 

Square D 1 254 

Squibb J 36 

Std. Brand* PaJnti 24% 


Am. Standard— I 274 

Am. Stores 38 

Am. TeL * Tel— J 36% 

Amatok Inc. i 28 

Amfao. 935a 

AMP- I 59% 

Amatar _w, 22% 

Amstaad Inds ... .4 254 

Anchor Hockg. 164 
Anheusar-Busch ■ 504 
Areher Daniel*. 16a* 
Arrvao «< 28% 


Armstrong CK.. 
Asamera Oil 

Aurco, 

Ashland OH..... 
Aasd D Goods... 
Atlantlo Rich.... 
Auto-Data Prg.. 

Avco 

Avery inti. 


Oentsply Inti | 

Detroit Edison. - 

Diamond Inti 

Diamond Shank.. 

D' Giorgio I 

Digital Equip. 

Dillingham 

Dillon 

Disney (Walt). 

Dome Minos....... 

Donnelly fRR) 

Dover .torp 

Dow Chemical. .. 

Dow Jones. 1 

Dresser.- 

Dr. Pepper. 

Duke Power...— 

Dun ft Brad 

DuPont. — 

EG ft G 


Husky OH 

Hutton 1EF>— 

ICInds 

IU lnt-.._ - 

Ideal Basle Ind.- 

Ideal Toy 

ICI ADR 

Imp Corp Amur.. 

IN CO 

Inqcrsol Rand.— 
Inland Steel.. .— 

Intel - 

Inter First Corp... 

Interlake 

Inter North 

IBM - 


Norfolk ft Waatat 

48 

478* 

Nth. Am. Coal —I 

31% 

31 

Nth. Am./ Philip*] 

39 

37% 

Nthn. 3tate Pwr.! 

86% 

26% 

Northgate Exp...' 

07* 

3% 

Northrop 

48% 

48 

NWest Airlines... 

30 

30% 

NWest Bancorp. 

22% 

23 

Nwe«t Ind3 

67 

66 

Nwestn Mutual..] 

9% 

9% 

Nwaat Steel W ...i 

19% 

19% 

Norton _i 

34% 

33% 

Norton Simon i 

21% 

21% 

Occidental Pet.., 

20% 

20% 


Std Oil Cllfornia. 

Std Oil Indiana... 

std oil Ohio- 

Stanley Wk* 

Stauffer Chom — 
Sterling Drug..' 

Stevens (JP) ] 

Stokely Van K...J 
Storage Tech — I 

•Sun Co 

Sundstrand 

Superior oil 

Super Val Stra... 

Syntax. 

TRW „ 

Taft ... 

Tampax.. • 


Avnst 504. 

Avon Prod 863, 

Baker Inti- 30% 

Balt. Gas ft El — 854 

Ban Cal 24 1 , 

Bangor Punta — 17% 
Bank America— 19 

S nkofN.Y. 41% 

nkers TstN.Y. 344 

Sorry Wright 27% 

Bausch ft Lomb.. 45% 
Baxt Trav Lab....| 333, 
Beatrice Foods...- 80 

Bekerlnds 1 64 

Ben ft Howell • 834 

Bell Industries.... 184 

Bendlx ! 534 

Beneficial -] 194 


Easco 

Eastern Airlines. 
Eastern Gas ft F 
Eastman Kodak. 

Eaton 

Echlin Mfg 

Eekherd Jack- 
Electronic Data. 
Elect. Memories 

El Paso- 

Emerson Eleot...i 
Emery Air Fgt.... 1 

Em hart 

Engelhard Corpj 


Inti. Flavours 1 

Inti. Harvester— 
InLIncome Prop.: 

InLPaper _,| 

Int. Rectifier. 

Int. Tel & Tel 

Irving Bank 1 

James tFS) I 

Jeffn-PIlot. 1 

Jewel Cos — ; 

Jim Walter. 

Johnson Contr....! 
Johnson ft Jn$— ' 
Johnthan Logan . 1 

Joy Mnf ...... 

K. Mart ■ 

kaiser Alum _> 

Kaiser Steel 1 



S3B 


■ ‘■lA.il 


r*w 


am 


Tandy 3s*3 

Teledyne 1254 

Tektronix - 55 

Tenneeo — I 27 

Teiora Pet _| 22 

Texaco 304 

Texas Comm. BIT 344 
Texas Eastern....' 483, 
Texas Gas Tm— 264 
Texas Inatr'm'ts. 1 924 
Texas Oil ft Gas-) 30% 
Texas Utilities 325, 

Textron- 244 

Thermo Eloctro.,1 157* 

Thomas Betts. 1 314 

Tidewater. J 24% 

Tiger Inti J 7 


Tima Inc. I 

Times Mirror — 1 




Beth Steel. i 934 

Big Thee Inds : 224 

Black ft Decker .' 1ST* 

Block HR 344 

Blue Ball— 343, 

Boeing- 204 

Boise Cascade .-! 884 

Borden —.1 35% 

Borg Warner. j 27 

Brantff Inti > 34 

Briggs Strata — i 243, 
Bristol-Myers— 56% 

BP j 22% 

Brockway Gluaa., 144 
Brown Forman B 38 

Brown Grp -1 314 

Brawn ft Sharp -1 157* 
Browng Farris.-.; 324 
Brunswick | 17% 


Ensnrch — ! 

Esmark- : 

Ethyl ; 

Evans Prods. 1 

Ex Cell O 

Exxon I 

FMC. j 

Fab ergo - 

Fodders -! 

Federal Co -j 

Federal-Mogul ...I 
Fed. Nat. Mort— ! 
Fed. Paper Brd...l 
Fed. Resources*! 
Fed. Dep. Stores; 
FlalderestMl— | 

Firestone 

1st Bank System 
1st Charter Fln..| 


Kaneb Services..' 
Kaufman Brd-...! 

Kay Corp 

Kellogg - 

Kennametal 

Kerr McGee | 

Ki dde- 

Kimberley Clark.: 
King's Dept 
Knight Rdr. Nws 

Hoppers. | 

Kroohler. ; 

Kroger — 

LTV | 

Lanier Bus. Prod! 

Lsar-Slegler. 

Leaseway Trans., 


Buoy rus-Erie ......' 164 

Burlington Ind ... 227* 


Burlington Ind ...; 227* 
Burlington Nrthni 48 

Burndy ; 194 

Burroughs | 57% 

CBI IndS. I 33% 

CBS- 1 42 

CPC Inti. I 374 

CSX -1 47% 

Campbell Red L 13 
Campbell Soup. 35 
Campbell Tagg...l 23% 
Canal Randolph-! 284 

Can. Pacific • 214 

Carlisle Corp ■ 26% 

Carnation \ 32 

Carp Tech 34 

Carter Hawley-.: 13% 
Caterpillar-. — • 46% 
Celanese Corp ... 66 

Centex — 22% 

Central ft Sw.„— : 164 
Central Soya — —1 113, 
Central Tel Util — 1 30% 
Certain-teed...— 12 
Cessna Aircraft.! 174 
Champ Home Bid. 2% 

Champ Int / 16 

Champ Sp Plug-' 73, 

Chnrtar Co 93, 

ChaseManhatt'n 67% 
Chemical NY.—. 36 
Cheese Pond— 353, 
Chicago Pneum. 144 
Chryslor— — — 5% 

Chubb— 1 417* 


1st Chicago- — ] 
1st City BankText 

1st interstate 

1st Mississippi— 
1st Nat Boston .. 

1st Penn 

Fisons 

Fleetwood Ent... 

Field-van 

Florida Pwr ft L.j 

Ford Motor _.i 

Foremost Mck.. J 
Foster Wheeler -| 
Freeport McM— , 
Froehauf 

6AF - i 

SATX l 


194 194 

241* 243* 

283, 283, 

9% 9% 

25% 24% 

34 34 

S% 5% 
154 ' 14% 
17 167* 

32% 31% 

221* \ 224 
31 ! 314 

123* 124 

164 ! 261* 
174 > 17 
13% j 134 
29 i 294 


Lenox 

Levi Strauss 

Levitz Fumtr : 

Libby Owens Fd.: 

Lilly (Eli - 

Lincoln Nat 

Litton Inds 

Lockheed..,. 

Loews ; 

Lone Star Inds . J 
Longs Drug Stra. 


Longs Drug Stra. 
Louisiana Land -| 
Louisiana Pac ....I 

Lowensteln- \ 

Lubrizol — 


Lucky Stra 

MiA Com. Inc-... 

MCA 

MacMillan ! 


37 367* 

23 22-% 

24% 241, 

224 224 

64% 63 

41% 414 

501, 49% 

544 64% 

97% 97 

214 21% 

297* 29% 

3U, 30% 

19% 184 

273, { 277* 
207* 20% 

144 | 15 
323, 224 

62 ; 53 

15% 155, 


Timken — 

Tipperary- 

Tonka — 

Total Pet 

Trane 

Transamertea . 

Transway 

Trans World- 

Travelers 

Trlcentrol 


J 664 54% 

10 % . 10 % 

.1 26% 264 

J 10 10 

... 29 4 30 

214 U% 
, ' 224 I 22% 
20% | 207* 
J 494 60 4 

, 73, ; 7% 


Trl Continental. 
Triton Energy-... 

Tyler— 

UAL -.1 

UMC India. -| 

Unilever N.V ! 

Union Camp. i 

Union Carbide—, 


19 18% 

123, ! 134 
15% • 151, 
21 % ; 21 % 
8 . 77* 

587* 584 

494 ! 49 ' 
47% l 47 


Ban net ) 

Gelco 1 

Gen Am Invest ,-| 

Gon Cinema i 

Gen Dynamics— 


Gen Electric 1 

Cpn FnnHa 1 


Gen Foods 

Gon Instrument- 

Gen Mills 

Gen Motors- 

Gen Pub Utilities 

Gen Signal. 

Gen Telep Elec... 

Gen Tire .... 

.enesoo 


Macy : 

MfcrayHanover... 

Man vi He Corp 

Mapco 

Marine Mid 

Marriott ! 

Marsh McLenn...' 
Marshall Fiold 

Martin Mtta ■ 

Maryland Cup— 

Masco ’ 

Massey-Fergn.... 
Mass Multi. Corp! 

Mattel j 

May Dept. Stra—' 



Union Oil Cal 
Union Pacific-...) 

Uniroyal J 

Unto Brands. 

Utd. Energy ResJ 

US Fidelity G [ 

US Gypsum- 

us Home 

US Inds 

US Shoe.. 

US Steel 

US Surgical- 

US Tobacco 

US Trust 

utd. Teohnolgs- 
Utd. Telecomms. 

Upjohn - 

VF 

Vartan Assocs—; 
Vcrnltron — 1 


333, ss 
57% 374 

84 84 

207* 104 

307* 307* 

44% 454 
31 31% 

13% 12 % 

9% 94 

324 32 

23 4 22 7* 

214 81 

60 473. 

37 37 

394 397* 

204 195, 

474 467* 

3B% 38% 

35% 344 

12. I 114 


Cigna — I 

Cincinnati Mil—! 

Citicorp 

Cities Servtcs 

City Invest 

Clark Equipment' 
Cl eve Cliffs Iron.: 

Corox • 

duett Peaby . .. 

Coca Cola 

Colgate Palm 

Gollms Aikman... 
Colt Inds 


Genuine Parts — j 

Goorgla Pac. 

Geosource 

Gerbes Prod 

Getty Oil j 

Giddlns Lewis—, 

Gillette i 

Global Marine....! 
Goodrich iBF),...i 
G oodyear Tire....! 

Could ! 

Graee ■ 

Grainger (WW)...| 


Maytag..— -I 

McCulloch 

McDermott 1 JR 1..1 

McDonalds 

McDonnell Doug 
McGrew Edison.. 1 

McGraw-Hill 

McLean Trukg . . 

Mead 

Media Gen! 

Medtronic 

Mellon Natl 

Mefvtllo 

Mercantile Sts ... 

Kcrek 

Meredith 

Morrill Lynch 


Virginia EP _! 15% 

Vulcan Matrls-..., 474 
Walker (Hi Rem... 127* 
Wal-Mart 8torea. 31% 

Wamaco • 304 

Warner Comma.. 543, 
Warner-Lambt.:. 24% 
Washington Post- 327* 

Waste Mangt 334 

WelsMKts. _■ 40% 

Wells Fargo 1 82% 

W.PoInt Peppi— 234 
Western Airlines! 4% 
Westn. Nth. Amr^ 113, 
Westing house...?, 26% 

Wostvace 1 22 

Weyerhaeuser— S 28% 


i 


■ 




Whoeiabratr F„. 
Wheeling Pitts... 

Whirlpool 

White Consolto.. 
Whlttaker ; 

williams Co 1 

Winn-Dixie Str—j 
Winnebago 
Wise Elec Power; 

Woolworth 

Wrlgley 

Wyly 

Xerox . 

Yellow Frt Sya ... : 

Zapata — ■ 

Zenith Radio — 


Indices 


NEW YORK —DOW JONES 

! 1 | 1983 'Since Cmpil't’r 

April 1 April April ' April ' AprH ! April : ! 

23 • 22 ! 21 20 ; 19 , 16 High : Low High : Low 


[Since Cmpil't'n 


elirdustr'ls BS7.IB 865,17. B4S.42 B40.SG-84G.M 843.4S 882.55 1 785.47 10S1.70 > 41.22 

i , (4(11 ' <8/3 1 (11/1(73) (2/7(32) 

H.meBnds. 69.3b 1 6B.1E 69.09 69JB 58.18 59.06; 69.06 ; 65.67 ■ — • — 

: • ; I (fi/41 I (12(2) : 

Transport- 346.S1 342.66' 542.61 545.20 3 48.43'5«J57 5S6.46 > 314.58 447.58 12.52 

! . ,7/1 » I (8(5/ (16 4 -01 1 (1(7:52) 

Utilities— 114A6. 115.74. 112A2' 111.96-111.16 1(9.37 1U.S9 | 10Z.6I 165.52 lO.b 

/ | r (25/41 (13/1] (29/4/68) (28/4.421 

Trading Vo | - 1 1 i 

000-1 71.840 64,470 57,820 54,610:58.470 56,880 — i — | — 

: ! i 1 : i 1 

e Day's high 866.39 low 851,79 


AUSTRALIA 

All Ord. 1 1(1(361 

Metal ft JWinls. f].'l/08> 

■ — 1 488.9 

1 — . 380.1 ; 

<30.1 1 
' S&J : 

1 4B2.G 
361J 


AUSTRIA j ; i ! i 

Credit Aktlen (2,1/621 64.42' 82.49 52.S4- 62J0: 66^6(4/71 | 61. W 09(4) 


112J0 (3/3) 


Ind. dhr. yield £ 


April 26 . April 19 April 12 Year ago 'Approx 



.8V 196.8 
M 116.7 


88.B (4/1) 
S7.7 (4/1) 


GERMANY I ; | ! 

FAZ-Aktion <31112/381 236.86 . 233.10 SS7.S4- 23S.7H 2® ,46 (B/4] 218.8S (1811) 

CommarzDank(Dee1863) 726.40 • 725.70 724j \ 721.10 1 729J (6/4) I 868.7 pad) 


Induat'ls. I 151.91! 150.12. 128.54 126,041 129J3! 129.771 137.28 ; 118.41 16BJ8 5.52 

f 1«, H ; <8'ff) l i38t } 1 ‘00 iaD.‘B;32i 

Composite: 1T8.W 117^0] 115.72 116.44; 118.70. 116.B1I 122.74 107.54 140.52 . 4.407 

. . i4.‘l) ! (8,3) (28 11/80 <T/6.’82l 


HOLLAND 


j 



ANP^BS General (1978) : 

S4.2 

9S.4 

92.3 1 32 .Ml 

K.4 (23/4) 

AN P -CBS IndUEt [1370) 1 

75.9 

73J 

72.8 J 72.00] 

73.9 (6/0 


Ind. dhr. yield £ 


April 22 ; April 15 , April 8 : Year ago iapprox. 


11294S 19/6) 


Ind. P>E Ratio 


Long Gov. Bond yield ' 



JAPAN** I 

Dow Average (18(6/43) 7404.21 7355^4-7286^7 7260.68) 7928^6 (27/1) i 6889.65 (17/3) 
Tokyo New SE (4/l/Bfl) , 665.95 558^4- 554 i 8 652 ill 683 JS (27/1) : 6811.70 (17/6) 


NY.S E. ALL COMMON 


Rideo and Falla 

;Apr. 23 Apr. 22 Apr. 21 


Apr.! Apr.' Apr.! *E-I 

25 . 88 - 81 & \ High ; LOW ■ «7 ! W8 


Issues Traded 1,808 


1,873 ,1,871 SINGAPORE 


6^657.4966.7165^71^0 ,«JB $gH/£±\ ^ | ^ ! *t{ 

, (4/1) I PM Now Lews I 34 ■ 17 J 23 


SOUTH AFRICA 
Gold flBSB) 
Industrial (1865) 


— | 444.7 I 457.7 4SS.1 I 669.3 (E.'l) 411 J (3/8) 

- I 6S9.0 I 68W i 68ft7 | 711.7 (8/1) 8655 (29/3) 


MONTREAL j Aor1 | i A - ri j . April ! April — 

S 23 ■ B2 ! 81 j 20 High ' Lo w 

Industrials i'iaUS 287.43*267^ 288^1 332.79 (4,1'. 1 270.46 iIB.P 
Combined j 270.30, 271.9 lj £72.44; 273.44! 318,08 (4,1) . 253.08 f1S.3» 

TORONTO Composite 1 16BS.2 1680^1 1506.9111595.51. 1SEB.3 (4.1) , 1657.8.15.3/ 


SPAIN i i 1 J — 

Madrid SE (50/ 13/011 » 100.90; KJ0.96I 100.6^ 100.79) 107,45 (9>2) 


Jacobson ft P. (1/1/68) ’ 567.73' 569.66' 379, 


668.23 (18(4) 


SwiSsiklRkCpn ./31/T2/68) 258. ig; 268 A 280.6 ] 268.0 [ 2S3.1 (tl/1) | 242.5 (1V3) 



NEW YORK ACTIVE STOCKS 







Chang* 




Chang* 

Friday 

Stocks Closing 

on 


Slocks Closing 

on 


traded 

price 

day 


traded 

pnCO 

day 


1.214,100 

65% 

+1V 

Atlantic fllcn._ 

785.000 


+ % 


20 

— * 

Houston Inds. 

767.7C0 

19=i 

+ *s 


1.107.900 

26% 

+ * 

Superior OH ... 

745.700 

34% 

+2% 


931.300 

44 

.+ \ 

Cbmwith Edison 

725.600 

22% 

+ % 

K Matt ... 

865.900 

19’. 

.+ h 

Emery Art 

710.500 

8% 

+ % 


WORLD , . ; 

Capital Inti. [I. 1 1/70) , — • — )55,0 ; 133.6 


(**) Set April 3 Japan Dew 7.333.32- T3E 539.69. 

Bjrt values of all nvhcca ara 100 except Australia AH Ordinary and Metals— 
5C0. NYSE All Ccnrnwn— 50; Standard and Pears — 10: and Toronto— 1.000: the 
last named basud on 1975. t Exdudmg bonds. 4 400 indusnwfc. S 400 
mdustns'is Plus 40 Uttitbco. 40 finanertto end » TxsrwpoBi- c Closed 
u llnavarlabd. ■ - >. •. 




y . 

Wall St weaker at 



WALE STREET stock prices 
I were mixed 1 b moderately active 
trading at lunchtime as profit- 
taking wiped out early gains. 

The Dow Jones Industrial 
Average was down 2.95 at S59J1 
after having been two points 
higher in earlier trading, bat 
advances still led declines by a 
narrow margin. Transports were 
1-24 higher at 346.85 and 
Utilities were 0.3? higher at 
114.96. 

The profit-taking was not un- 
expected, given ' the markets 
recent gains. There is uncer- 
tainty about the Federal 
Reserve's monetary policy, as 
well as international considera- 
tions, notably the Falkland 
Islands dispute. 

The market benefited in the 
morning from Friday’s report 
that U.S. money suppiy (M-l) 
fell an unexpected 51.9bn in the 
week to April 14. However, izh 
vestors are still concerned that 
further strong growth in the 
money supply may cause the 
Federal Reserve to tighten 
monetary policy, despite the 
weakness of the economy. The 
lack of an .agreement between 
the Reagan Administration and 
Congress on the CLS. budget also 
continues to -%ang over the 
market 

American Telephone slipped $ 
to $554. It said it plans to fUe 
a shelf registration for 10m 
Common shares. Telecom 
Corporation lost SI to SIS- It 
said a subsidiary will file under 
chapter 11 of the Federal 
Bankruptcy Code. 

American Stock' Exchange 
prices were lower hi moderate 
trading, with the index off 0.73 
to 275.07 on volume of 2m 
shares. 

Volume leader Ranger Oil 
eased \ to $5§, while Dome 
Petrolifom lost f to S7J and 
Wang Laboratories declined J to 
$321. 

Canada 

Canadian stocks fell unable to 
held earlier gains led by Oil and 
Gas Issues. Golds, whkdi were 
higher at the opening, also felL 


Harding Carpets “A* was 39 
cents lower at $1.55 and Dome 
Petroleum was off I at $9}. Royal 
Bank of Canada tost 75 cents ax 
$20*. 

In Montreal, the composite 
stock index fell 1.82 points to 
269.08 on a volume' of 202,917 
and Industrial were off 1.44 to 
2S6.S9. 


Johannesburg 

Gold shares closed below their - 
best as the bullion price slipped 
to below $360 after its sharp 
gains on the Faiklands crisis. 
Trading was quiet and among 
Heavyweights. Driefontein was 
up R1.2& at R25.75 and lesser- 
priced producers had gains rang- 
ing between five apd 25 cents 
after scattered gains of up to 50 
cents earlier. Platinums and. 
Coppers were finn but in Dia- 
monds. De Beers shed 10 cents, 
at R5.00. Industrials closed nar- 
rowly mixed after a firm 
opening. 


lower end foreign stocks were 
mostly higher m. qatet tnadtagi 
The Belgian Industrial index 
was at 99.04 against 99.27 on 
Friday while fbe sH-ebare index, 
was at 206.55 against 20524. 

Announcanenit of a new 
domestic Loan issue by the 
§odetd Rationale de Credit a 
] "Industrie caused the downward 
drift of Belgian shares. 

Astarienae rose hy 4 per cent 
Tahacofina and Coekexill by 2 
per cent, Solvay fell 3 per cent, 
Tessenderioo lost' 2 per cent, 
ElectrobeL Vleine Montague 
and Geraert each shed 1 per 
cent 




Closing prices for North 
America were not available 
for this edition. 


Germany 

In Frankfurt leading shares 
closed barely steady as concern 
over the F aiklan ds crisis 
deterred investors and outweigh- 
ing ttie firm domestic bond 
market and Friday's strong Wall 
Street close. Turnover was low. 
BBC was a weak feature in Elec- 
tricals. dosing DU 9 lower at 
DM 215 after cutting its dividend 
to DU 6 from DU S. 

As the Commerzbank index 
edged down 0.3 to 725.4, 
Commerzbank itself closed DU 1 
lower at DM 152, Deutsche Bank 
slipped 20 pfennigs to DM 286.20 
and Dresdner was steady at 
DM 167. In Motors, Daimler 
added 90 pfennigs to DU 287.90 
but BMW fell DM 4 to DM 208 
and VW lost DU 120 to 
DM 149.30. ■ 

In Chemicals Hoeehst added 
30 pfennigs to DM 126.80, but 
Bayer slipped 50 pfennigs to 
DM 126.50 and BASF dipped 
10 pfennigs to DU 137.50. 

Its Electricals Siemens shed 
DU 2.50 to DM 222. and hi Steels 
Thyssen lost DM L40 at 
DM 85.10, while Mannesmann 
lost DM 1-60 at DM 147. 


Switzerland - 

Share prices closed raised la. 
fairly high turnover as opera- 
tors turned increasingly 
cautious after Friday's news of 
higher inflation in Basle. 
Volume declined. ‘ as many 
investors decided to stay on the 
sidelines. On the bond market, 
recently issued Swiss franc 
foreign bonds lost some ground, 
while trading in the domestic 
sector was quiet. 

Interest-sensitive issues were 
lower, led by the Banking 
sector. DBS, Credit Suisse and 
Volks bank were among the 
major losers, while Bank Lea 
Bearer and all shares of Swiss 
Bank Corp were in demand. In 
Financials. OerBfcon-Buebrle 
continued lower. Adia, EJektro- 
watt and Hoiderbank also lost 
ground, - while Interfood and 
Flrelll held steady. 


Hong Ko 

The stock market 
sharply higher in very attiv* 1 
trading, following a hid. for i mg-." 
20 per cent of. Song Kbugfflea* . . 
trie <Hol(hngS). The Hang 8«R'- = 
index rose 43.43 
highest since February l& .The' 
bidder^ agent, Jardine 
offered up to HK$$.75 eacb fwr " 
over 222m sharesr and vgx. ^.. 
HK59.40 each, for 
warrants of HK Electric . 

dosed at and 

respectively last week---; : 4. 

Trading rose hi the-afteratioftV 
after resumptldn in tradtog.bf^ 
HK Electric, which flnidied 
HKS6.35, and 1 broken.; 
new baying from snail invars' 
conscious of the fact that irnertL' 
stocks 'are tsmrentiy . undfeC;' 
valued. China H^t gamed?- 
HRS1 to HKS1410. Bong K om*. 
Land was 5 cents up HK|7JS' . 
and Chezing Kmig 'Sff ' mk.'to'' - 
HK316.70. ,-T^V: 


Tokyo 

Share prices rose^ 

Investors attracted, to. Blue Cblpg': ' 
by the Yen’s sharp., reppvnyir 
against the dollar and sigo&'of- . 
greater stability .in ‘ the 'Diu.- 
economy. The market average > 
gained 33.53 to 7,40421, bret praj* l 
ing volume was light at 300a.-' 

shares. TQie Tokyo . (Stock' 
Exchange ktdexr roee *25 tth- 

545.85. .-. r 


Paris 


Brussels 

Belgian sbar& were mostly 


Share prices were higher in 
quiet trading*, as some investors 
showed more confidence m shares 
than foreign currencies due to 
the uncertain international 
monetary outlook. Foods, 
sSupreoutSasr * 50 * 07 $ ‘spzonzBqo 
and Metals rose while Banks, 
Portfolios, Oils and Electricals 
wore mixed. Motors fell back. 

Elf-Aqultaine fell FFr 1 to 
FFr 14S following Friday’s 
announcement of a reduced 
group net profit last year. 
Schneider fetl FFr 4 to FFr 127 
following news of a net loss last 
year. 


Market . leaders iwe s&ujiiy ■ 
on bargain hooting ; v.jrtfi l ' 
Matsushita Electric gaintng. 
to 71.080, and Toyotsi Motor 74ff" 
to 7960. Low-priced dozn&ftc '' 
issues were mixed. 7 


Amsterdam 


Share prices * were ' maMy 
higher. The strongest gains %em. f ' 
in local shares, bW: atoong firt^ 
nationals KLM add6d Fl 3 b 
FI 107.80 and Royal Dutch rose 
Fl 1.20 to Fl 94.. Banks were 
firmer, with NMB np FI 
Fl 136. ABN was np FI 2 at 
Fl 305 and Amro gatoed FlLfifr i 
at Fl 55. v . s* 

In later trading, fJM gained 
further ground and Philip®* 
ended 30 cents ujl NMB Bank :' 
was Fl 5^0 higher by the d cee. ’ 


BS.GIUM (continued) 


April 26 


Priee +01 
Fra. — 


AMCA Inti 

18% 

17% 

Abitibi 

18 

18% 

Agmco Eagle ^.4 

7 

b% 

Alcan Alumin^... 

23% 

22S* 

Algoma Steel 

337* 

34 

Asbestos 

12 % 

12 a* 

Bk. Montreal 

21 

21 

Bk. Nova Scotia. 

21 % 

22 

Basic Resourced 

3.50 

3.50 

Bell Canada^. 

19% 

19% 

Bow Valley 

15 

14* 

BP Canada. 

32% 

32% 

Brascan A^_ 

lean 

18% 

Brinoo _ 

4.80 

4.80 

B.C. Forest 

9% 

9% 

CIL Inc. 

23% 

23% 

CadillacFalrviawi 

8 % 

8 % 

Gamflo Mines 

85a 

9 

Gan Cement..^ 

B% 

91* 

Can N W Landi._ 

23% 

23% 

Can Packers-. _ 

29% 

29% 

CanTrusco 

— 

— « 

Gan Imp Bank... 

23% 

24% 

Can Pacific 

26% 

27% 

Can P. Ent. 

137* 

14% 

Can Tlre-._ 

35% 

36% 

Chieftain 

18% 

18J* 

Com Inco- — 

42 

41% 

Cons Bat hot A.... 

14 

14% 

Cont. BK. Canada 

7% 

67* 

Cose lea Rearc 1 es 

7 

6 % 

Costaln 

S'* 

7% 

Daon Da val 

2.64 

2.40 

Denison Mines... 

23% 

23% 

Dome Minas 

135* 

13% 

Dome Petroleum 

9% 

10 

Dom Foundries A 30s* 

30% 

1 Dom Stores.-^..,. 

16 

16% 



DENMARK 


.April 26 

Priee 4- or 
* — 


Andeltbanken. 
Baltics Skand 
Cop Hand ols b 

D. SuWierfab 

Danalca Bank 

East AmHb.. J 
Foranda Berygg. 
Forcneda Damp. 
CNTHtdg 


Jyaka Bank. 

Nord Kabal- 

Novo Ind 

Paplrfabrlkker. 
Prlvatpanken 
Provinapankan- 
Smidth iF0..._.. 
S. Barondsan ... 
Suparfos ........ 


Holllngar ArgutuJ 87 27 

Hudson Bey Mngj 17% 17% 

Hudson 'a Bay_._. 23 22% 

Husky Oil 7% 8 

imaaoo — 38%. 38% 

Imp OIIA 227* 22% 

Inco ...... 13% 13% 

lndaL_ 12% 13 

Inter. Pipe. 16% 16% 


i Mac Sloedel. i 

Marks ft Spencer 

Maaaay Ferg j 

McIntyre Minea.J 
;Mer1and Explor.. 

Mitel Corp 

IMoora Corp < 

i Nat. Sea Prooo A’ 
iNoranda Mines ..i 



Nthn. Tolecom..! 65 
Oakwood Pet....; 11% 
Pacific Copper...- 1.90 
Pan oan Petrol...; 63% 

Patino • 21% 

Placer Dev : 11% 

Power Corp. 11 


Guabec Strgn .,^1 2.40 J 2.50 


Rangar Oil .... l 

Read Stenba A 
Rio Algom.... w ..J 

Royal Bank.........] 

Royal Trust co A.. 
Sceptre Res. ! 


Seagram i 

Shell can oil I 

Steel of Oan A.. J 


67* I 67* 
12 % 12 % 
33% 34% 

21% ! 23% 
14 ' 14 

6 % 6 % 
65% 65 

16% I 16% 
21 < 21 % 


Texaco Canada..: 25 
Thomson NewsAl 197* 
Toronto Dom Bk.'; 28% 
TransCan Pipe ...i 21% 
TranaMntn.Qii A 7% 
Utd. Sisco Mines! 4^0 
Walker (Hi Rea...; 157* 
WesteoatTrana.. 13% 
Weston (Geo).,, J 36% 


. 

155.3 (16/1) 

1M.B nil) 

87B.7S (8rD 

- 

667.49 (B (!) 



15,200! -*-370 1 xa 


P X 

IVlfi 




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.jir 1 . j(.“ 

p^IFV 1 i 


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lP f i ‘ - 
»r r ;' }"•;* ■ 
« 3 -’ . • 




■■ |<: i r * . 




S' 11 l " r . 

■ill'*'' •.'■ 
■ 

i“”.. 

i«* 1 ' ••••■ 

;1 J 1 
■' 

iCr 1 

■liBI!' 1,1 ' 
f !ii*“ 

■ 


J i 


' ... 
53T ; •. 

.-!%T 


FlNANC 


U u ,.. 

■"'•uillil 

*B«H|?11 

!5>r-d 
'*'****£! 
t2 h *«i 






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‘ rt ' , vr&Mn 


Financial Times Tuesday April 27 1982 

Coi panfeT an! Ifarkftts ' ~ " LONDON STOCK EXCHANGE 


Markets quietly steady despite Falklands uncertaii 
Mam indices barely changed but Properties lower 


:• -;v 


_ . . Acamnt Dealing Dales 
■ Option ' 

*Flr$t Dedara- Last ‘Account 
Dealings tions Dealings Day 
Apr IS Apr 28 Apr 29' MaylO 
Apr 3D May 13 May 14 May 24 
Slay 17 Jun 3 Jdn 4 Jon 14 

“■'■Nw thne" dssijngs may taka 
>'ac* from S.30 am ’two business days 
sariler. - - - 

Trading condi lions on London 
stock markets after the weekend 
developments’ In the Falkland 
Islands '■ -crisla showed little 
change "fEoin ’ those raising Last 
Friday. The two main, invest- 
ment areas held steady, despite 
ah initial /bout of ■ nervousness 
created. - by the • recapture of 
South Georgia by British troops. 

Markets, quite naturally, 
remained thin and sensitive, but 
a markdown in leading shares at 
thb opening of business proved 
unwarranted -with sellers scarce 
and " a" ‘ few buyers showing ’ 
interest at -Hie lower levels.- As 
a result, prices edged a little ' 
higher : anti ^ fall of' 1.5 in the 
IT 30-Sha.re’ ixHiex at 10 am -was 
eliminated ah' boar later.- There- 
after, busings -was. barely stiffi- ' 
cient to test-prices.' - Mixed. move- - 
meats in the constituents rarely ' 
exceeded a, -couple. of pence at 
the- dose- and index . ended 
0.9 higher on the -day at 56&.0, 
late sentimeht- being helped by 
assurances from Mrs Thatcher - 
that the Government still seeks 
a peaceful settlement to the 
Falklands dispute. 

Secondary issues produced the 
occasional ? bright feature, but 
overall jt was. an uneventful day. 
Among the sectors, adverse Press 
mention made for air unsettled 


and dull trading session in Pro- 
perties, while the recent revival 
io Oil shares, prompted mainly 
by the sharp cutback in Opec 
crude production, lost momen- 
tum; ' 

The trend in British Funds 
similar to that of leading shares. 
Mirroring initial dullness in 
sterling, mediums and longs 
opened around 2 lower before 
staging a gradual recovery and 
(dosing with the occasional rise 
of t on balance. In contrast, 
short-dated slocks dosed -with 
falls ranging to i. reflecting tight 
conditions and a move to higher 
rates for short-term money. T^ie 
Government Securities index 
closed a mere 0.02 down at 67.59. 

Lloyds Bank dull 

Reflecting revived fears that 
tbe bank's substantial Argen- 
tinian assets might be 
sequestered following the week- 
end escalation of the Falkland 
Islands crisis, Lloyds dipped to a 
1982 low of 402p, before rallying 
to close a net 10 down on the day 
at 4GSp. - The other major 
clearers. which were also up to 
8 easier at one stage, improved 
after tbe official close to finish 
virtually unchanged on balance. 
Barclays softened a penny to 
445p, after 440p. while Midland 
ended unaltered at 320p, after 
3L2p. Elsewhere, Clive Discount 
touched 31p on tbe preliminary 
figures before finishing un- 
changed at 2Sp. Overseas issues 
firmed in thin trading; Deutsche 
added 11 points to £681 and Hong 
Kong' and Shanghai appreciated 
4 to 113p. 


FINANCIAL TIMES STOCK INDICES 


;■> • . ' ;i 

W 

-Government Secs^.j 

67.59 

Fixed Intersst 

67.66 

Industrial Ord ,..h 

568.0 

. Gold Mines .| 

267.1 

Ord. Dlv- Yield 

5.52. 

Earnings, Yld. £(ft] Mi 

- u-.il 

P/E Ratio (net) 

11.49 

Total bargains ..J 

16.121 

Equity turnover £m.j 

— 

-Equity tiarBalns^.^J 

_ 


-B7.B7 67.451- B-Uk! 69.18 

60.28.1 67.78} 67.4oj 71 JO . 
567.4' 56S.6J 6SB.Z 556.0 
- 2 60.6 j 247.81 265.sj 356.8 
8.54 ' B.SfiJ 6.60 6.62 

11.02 11.12' 11.21 ‘ 11.08 
1U8 11.2b! 11.19! 11.37 
1 3,973 j 15.476) 13 J7«f 28,365 
104.94. 116.601 77 JO; 171 J8 
11,8121 12,4621 6,395 24,435 


-r. 10 am 565.6. 11 am 567.1. Noon 566.7. 1 pm 566.7. 

2 pm 566.6. - 3 pm 566.7. 

Basis 100 Govt. Sks- 16/10/26. Fixed Int. 1928. Industrial Ond. 
1/7/351 Gold Mmas 12/9/56. SE Activlry 1974. 

Utttl Index 01-246 8026. 

•NH-10.61. 


HIGHS AMP LOWS 


S.E. ACTIVITY 


1983 Janos Cnmpllat’n 1 


— : — “it t?* 1 ■; Daily 

Govt. 8«U_.j eb .55 'J 61.89 127.4 ! 40.18 • tarelln! 

- - : . 1 (21 ii> : iMj ■ fliHB) I i*/im> 

; 'Rxa<Hnt*.-i 69.74 63.79 I 160/4 | 50.53 i Bare ai ns 

••■7.1 (21*) (7m WW11I47) .(#*1/151 [ Value 

‘ Ind. Ord...... 1 579.B 518.1 ! 507.3 ' 49.4 

" J (M/l) |5/1) .(M/4/811 (2MW0| 

i Qeid Minas 303.0 209.2 : 558.9 ' 43/5 'Equities 

I (6/1) W/5) «2/M0> (25/10/711. Bargains.. 

I ■ • i Value 


j April | 

| ; April 

( 23 

22 

i j 

J 136.7J 

; 133.3 

80.3: 

81.3 

.1 239.3 

306.7 

1 ! 

.1 139.3! 

141.7 

76.0. 

76.1 

.' 3S0JJ, 

238.2 


Industrial Group 

saries Index 


UI-TBEHS 
Area 2,- 


J A S O 
1981 


D. J F M 

1982 


Lloyds Brokers moved higher 
among Insurances, helped- to 
some extent by currency con- 
siderations. Willis Faber stood 
out with a rise of 10 to 475p. 
while Slewart Wrightson gained 
5 to 242p and Hogg Robinson 
improved 4 to 106p. Elsewhere, 
Hambro Life put on 6 to 307p 
as did Son Alliance, to 796p. 

Tern active 

Marked up to 335p on 
Shepards and Chase's dawn-raid 
on behalf of an unnamed client 
prepared to acquire a near-15 per 
cent stake in the company at 
335p per share. J. Jarvis touched 
345 p on the appearance of 
another buyer before settling a 
net 39 up at 341p. Elsewhere in 
the Building sector. Travis and 
Arnold put on 11 to a 1982 peak 
of 179p in response to the better- 
than-expected preliminary profits 
and increased dividend. -The 
undertone in the leaders stayed 
firm. Tarmac hardened a couple 
of pence to 492p awaiting today's 
annual results. George Wimpey, 
preliminary statement due on 
Thursday, added a penny to 
109p but Blue Circle, annual 
results due tomorrow, softened 
4 to 460p. 

After opening, 6 cheaper at 
312p, I Cl rallied on the appear- 
ance of buyers to close 2 dearer 
on balance at 320p. 

Selected Store leaders 
attracted sporadic support in the 
later business. House of Fraser 
were particularly good at 156p. 
up 4; the full-year results are 
expected tomorrow. In contrast, 
W. JL Smith, also due *o report 
annual results tomorrow, gave 
up a couple of pence at 275p. 
Secondary counters were also 
irregular. Tern-Consulate were 
briskly -traded ahead of today's 
results and jumped 8 to 46p, 
after 47p. while Harris Queens- 
way continued to draw strength 
from last week’s encouraging 
annual figures and rose 4 more 
to ITZp. Polly Peck, on the other 
hand, -turned dull and shed 10 to 
33Bp, while profit-taking also . 
affected Foster Bros Clothing, 3 
lower at 5Sp. 

Interest in the Electrical 
leaders was at a low ebb. Prices 
drifted lower on lack of support 
and B1CC closed 5 lower at 320p 
and Thorn EMI 2 off at 42Sp. 


Plessey also relinquished a 
couple of pence, to 375p, and 
C.EC lost the turn to 838p. Else- 
where, improvements of 14 and 
15 respectively were seen in A. 
and G. Securities, 123p. and ESI 
London, 25p, while Automated 
Security added S to 230p. 
Farnell cheapened 2 to 183p in 
front of today's preliminary 
figures. 

Simon highlighted Engineer- 
ings, rising to 3S3p before 
closing 10 belter on balance at 
373p in response to -the slightly 
bettcr-than-expccted • preliminary 
results. .Other leaders made 
progress in sympathy, but the 
volume of busines was small. Up 
28 last week on good annual 
figures. Hawker finned 4 more 
to 328p. GKN ended a similar 
amount dearer at 165p. Tubes 
improved 2 to. 140p as did Jobn 
Brown, ..to . 58$p, after 59p. 

Leading Foods were inclined 
easier in places. Dawn 6 on 
Friday on news that Redpath 
Industries of . Canada, in which 
the company holds a 25 per cent 
stake, had incurred a second- 
quarter loss, Tate and Lyle 
reacted to l98p before closing 2 
down on -balance at 200p. 
Northern Foods lost 4 to 160p 
and Associated Dairies a couple 
of pence to 12Sp. 

Lonsdale Universal np 

In receipt of a 60p per share 
cash offer from John Menries. 
Lonsdale Universal rose 6 to 72p 
on talk of a counter-bid from Mr 
Robert Maxwell's British Printing 
and Communication Corporation 
which has bought a 10.25 per cent 
stake in Lonsdale. Elsewhere In 
miscellaneous industrials. Press 
comment prompted improve- 
ments of around 4 in Benlox, 29p. 
Euorpean Ferries, 75p, and 
Smith and Nephew, 122Ap, while 
Clement Clarke gained 4 to 136p 
following the results. 

Awaiting Friday's annual 
figures. Davies and Newman put 
on 3 to 77p. while Far-Eastern 
influences brought about a rise 
of 10 - to 178p in Jardlne 
Malheson and a gain of 54 to 
62p in Wheelock Warden. De La 
Rne came on offer at S05p, down 
15. and Sale TUney lost 7 to 
20Sp. Of the quietly mixed 
leaders. Unilever improved 4 to 
607p and Metal Box hardened a 


couple of pence to 156p. after 
15Sp. A dull market last Friday 
as a large lmo of shares was 
placed through the market. 
Bowaler remained friendless at 
226p, down 2> 

NCC suspended 

Press criticism about the recent 
rights issues in the sector 
prompted early dullness in 
Properties; the leaders attracted 
a certain amount of support at 
the lower levels before drifting 
off again to dose at the day’s 
lowest. Land Securities finis hed 
7 down at 274p and MEPC 6 
cheaper at 194p. Great Portland 
Estates also shed 6. to 164p. 
while Capital and Counties, 127p, 
and Slough Estates, I26p. lost 3 
apiece. Elsewhere, Daejan 
cheapened 5 to 168p as did 
Rosehaugh, to 260p, while losses 
of 4 were marked against Rush 
and Tompkins, 220p, and Mount- 
view Estates, X60p. Against the 
trend. Westminster Property met 
speculative interest and added a 
penny to 31 p. 

Down 8 on Friday following 
adverse Press comment about the 
company’s links with Simplicity 
Pattern, NCC Energy came under 
further pressure and dropped 20 

10 35p at which level dealings in 
the company’s shares were sus- 
pended “ pending clarification.’’ 
Energy Capital, in which NCC 
holds a 29.4 per cent stake, 
dropped 15 to 30p. Global 
Natural Resources became 
another dull feature in the Oil 
sector, plunging 115 to 690p on 
reports that a group of share- 
holders in the company were 
seeking the replacement of the 
entire Board. 

Berkeley Exploration added 5 
to 270p in the wake of Board 
changes following the recent 
purchase of a 28.9 per cent stake 
in the company by Elf UK from 
KCA International. Clyde Petro- 
leum put on 5 to 105p on revived 
bid hopes, while renewed demand 
in a thin market lifted Saxon Oil 

11 to 53p. Lasmo firmed 10 to 
360p following a broker's 
circular, while Ultramar gained a 
like amount to 443p. 

Among Overseas Traders. Steel 
Brothers, a firm market or late 
attracted renewed speculative 
support and dosed 10 up. at 230p 
ex the rights issue ; the hew nil- 
paid shares opened at 45p 
premium and touched 52p 
premium before closing at 50p 
premium. 

Leading Textiles lacked incen- 
tive, but a couple of trading 
statements provided firm spots 
among secondary issues. The 
strong second- half recovery and 
consequent reduction in full -year 
losses lifted John Crowther 3 to 
25p. while S. Lyles finned a like 
amount to 81p following tbe 
increased interim profits. 

South African industrials dis- 
played useful gains reflecting tbe 
strength of the bullion price. OK 
Bazaars advanced 35 to 775p. 
while Grealermans A rose 18 to 
3lSp and Barlow Rand 10 ta 
405p. 

Business in otherwise idle 
Plantations was dominated by 
McLeod Russel, which fell 23 to 
295p in belated response to last 
week’s boardroom changes; the 
8.4 per cent Convertible 
Preference reacted 6 to 106p. 

The outbreak of fighting in the 
South Atlantic over the weekend 


RECENT issues 


EQUITIES 


i=.tsg w : i98z 

SnSgE - . 

I — B5 *5 Q 

<c- J E High Low 


'?g i ! d lisligs^s 

' S* - I II?®* 0 -* 


led to initial sharp gains in the 
bullion price and m gold shares. 
However, bnlh movemegus 

were quickly followed by size- 
able profit-taking end closing 
prices were well below the day's 
best. 

Golds still mar/ged io retain 
good gains on Friday’s closing 
levels and the Gold Mines index 
responded with a rise of 7 points 
to 267.1. 

The bullion price closed S2.75 
firmer at S355.25 an ounce after 
having touched S365 in the early 
trading. 

In heavyweights. Sonthvaal 
featured with a rise of } to £141. 
while Winkrlhaak put on ? to 
£12j. Western Holdings ended } 
up on balance at £20',. after 
•£20A, and Buffels unaltered ai 

£16. after £16;. 

South African Financials 
foffowed the pattern in Golds. 
Gold Fields of South Africa rose 
almost a point io £28*. “Amgotil" 
improved J (n £35] 'and Anglo 
American Corporal Ion 10 to 
525p. De Beers gained C to 222p: 

Golds below best 

Australians look las*, week’s 
recovery movement a Mage | 
further but were looking vulncr- ! 
able at the cio:.o as heavy protli- 
taking developed. HIM Holdings 1 
touched a 1982 iugli uf 194p prior 
lo closing a net 4 better at lHOp, 
while C.RA ended 2 up at ISOp, 
after 184p. 

Golds were featured hv 
Poseidon, up It more at HTp, 
and Gold Mines or Kalgoorlie. a 
similar amounL firmer at 225p. 
after S-lftp. 

A generally subdued session 
in London equity mark els failed 
to hinder an active businos in 
Traded Options where contends 
completed exceeded 3,000 for 
only the sixth time so far this 
year. Total deals arranged 
yesterday amounted to S.0R8, 
well above last week's daily 
average of 2.131. Once again, the 
majority of trade was transacted 
in calls with nil sfnrks again In 
the fore. British Petrolenm and 
Shell Transport recorded 260 and 
206 calls respectively, while 
Lasmo attracted 10S. Good sup- 


OPTIONS 

First Last Last For 
Deal- Deal- Declare- Settir- 
« ings ings tinr. meat 
April 26 May 7 July 28 Aug 0 
May lO Hay 21 Aug 12 Ang23 
May 24 June 11 Sept 2 Sept 13 
. For rote indicationx see end of 
Share Information Service 
Call options were arranged in 
Premier Oil. Corah. I CL. 
Poseidon, Callus Pacific, BP. 
Bougainville. Vickers. Double 
Eagle, Metals Exploration, 
Clyde Petroleum. NCC, Ber- 
keley Exploration. Tent -Consu- 
late. 11a om a Gold and Fohcl 
International. - Nn puts were 
reported, but doubles were 
taken out in Premier Oil, BP. 
Lloyds Bank and I Cl. 
port was also directed towards 
Marks and Spencer, which 
recorded 34 2 calls in front of 
Thursday's preliminary results, 
and Imperial with 334. Court an Ids 
and Grand fifetronolitaa attracted 
284 and 248 calls respectively. 
Puts traded amounted to 4SRp. 
of which BP accounted for 170. i 


F.P. 14 5 
F.P. 26- * 
r.P. 15.4 
F.P. 21 5 
F.P. 28.5 
F.P. - 
F.P., - 

F.P. 14.3 
F.P. 6.5 
F.P. - 
F.P. 7-5 
F.P. 16,4 
F.P. - 
F.P. - 
F.P. 13-5 
F.P. - 


AIM Group JOp 147 

Amersham „ . 207 

■Cambrian & Gen.7£p 29 
Group 10p....i]09 
^DeBrotti Andrei Kip 61 

Dew (George*. 125 

Greenfriar Warrant*. 39 
iGr'p mv Option Crta 15 
*lo Technology .245 

■51mm. Bus. Sys.lOp 89 
*Jcb*ens Drilling... *55 

❖trisiire Inc/s. 

;*s*Oceonic* 10p *50 

Osprey Assets 

p. rt. industrials ' 

{Standard Secs. *£o 

Zambia Cons Cpr 10K! 80 


•r I M*.7& 1,8 5.6 13.2 
; + 4 1>3.5 2.4 2.416.7 

ud2.5 2J 3.515.7 
_1 .1)2.5 | 2.1, 5-9 11.6 

fl5.7 . 4JJ 6.5 5.5 

,+ l ; - 


_S bl7.5 2.3 9.4 6.3 

bS.O 2.B 5.9 8.5 

.. .. bdl.5. 4.7 1.3 17.1 

’ F1.4 - . 8.7 — 

bo.S 1,8 12.2, 6.4 

. b2.B 1.2; 2.8 « J 

; + b • — ■ — i ~ ~ 


FIXED INTEREST STOCKS 


Issue § 3 
price o-o 
C Er 

■ < — 

jao f.p. 

r lOO i 10 
■90.i3: £25 
■ SCO CIO 
“ F.P. 
100 'F.P. 
'93 F.P. 
1DD F.P. 
. ICO F.P. 
l'.-:i r.P. 
107 Nil 
- F.P. 
PC.55 ICO 


"■‘ c ! High ' Low I 

;I4*4 ills '210 ^ 
24.6 10>:' 10'; 

14 7 25 Cl’.' 

1;7 . 11*- 11*.’, 
IS6 IS 6 
22.5 102 97 

29-4 -101*; 101*- 

- 190V. 994^ 

— 100',.. 99 *n 

- 1001:100,. 

29:4 apmlfpm 
16,4 102-n loop 
20 5 25* r l S»’j 


8odd/W7tonsBrew 9>al Cnv. Ln.MM.B5 

Bristol Water 9£ Prcf_ - - 1 

Crert. Fonder de Franco l«i ^ Lon.-«*r ; 
East anqlia Wntor 9% Red. Prf. 1987.. 
First Nat. lC.pcConw. Uns.Uv.lBB7.. 

Hunting PcL 10 ; Cnv. Ln. 1997 

Leo Valloy 9*;t Red. Prt- 1 ? 8 ® 

N ati&n wido Bdg. Soc. 14l:„ »14.3 83.. 

Do, l»U r * >4.4.-8ii - 

Do. I4VS .35 4.83* 

Queona Moat 1D*L Cnv.‘89.Bl - .. 

Ropnors ll*2r Cum. Prt _. . . .. . ■ 

Trans-Cnnod Pipelines 16iV Notes ZMU 


«wa l. „ 
e a |-r or 


ix2 :. - 
ldr - 
25 ■ + *. 
1U: - 
136 ... 

87 ... 

1001 ; 
99>j ... 
99!, ... 
100 <4.-1 
l»pm — 1 
102p - 
22Sj -1 


“ RIGHTS 39 OFFERS 


■s t Latest 1 
Issue _=ij ' Ronunc. 1982 

price 'cj pnlo — .- — - — 

p < c. O ■ High ‘ Low 


F.P. 27 4 
Nil 13-5 
F.P. 214 
Nil 

F.P. 15.5 
F.P. 29.5 
Nil 50 4 
Nil 10.5 
F.P. 2? 5 
Nil 7.5 
Nit 12 S 
Nil 

F.P. 19/4 
Nil 29.4 
F.P. .*6 4 
F.P. B-4 
Nil 

F.P. 24 >5 
Nil 10S 


13 iAn*ib.-ieher iH.* So 

20pm Ennk Lctimi -UK* £1, .. 

155 Deader >C. H.. lOp 

5*--pn* Bond Ccrp 

75 •’•Clyde Petroleum .. . 

50 First Castle lOp 

i4pnt Fisher -A.i 

v om Crovoboll -5pi 

)M Hnntuiq Pet. Services. 

I' 24pn»LilleV F.J.C.- . . 

i 35pm low iWm. * 20p 

i 4pm North 

oir Platifjnum op 

i -i pm Queens Moat 

99 Rile v Leisure .. . 
98 st. George's Grp. IQp. 

i 45pni Steel Bros. 

1 0 1; Sturia 10p. 

< 14pm Vickers (i-'l* 


•ss ft 

“ 


in. 

20nm ■ ■• 

U7 

Z6pm • •• 
105 *b 
56 

25pm +* 
•*ipni — 
.182 

31pm -2 
35pm —3 
14em -t> 
7t» . . 
*ipm •••• 
104 

112 -4 

SO pm 

Ills .... 
29pm * l 


Remmctatjoa dsu uwetty (set dsy tor dsalMfl Ire* o I map dutj. b Hboih 
ba-od on prospectus uthulo. d DhHdsnd rate psM or peyeble m pert et 
capital: cover besed oo dhiMwd oo fob capital, p Assumed dividend sod yUd. 
r Indicated dividend: cover relates to previous dividend. P/E ratio baaed on lataet 
annual csmitvjs. u Forecast divldond: cover based on previous year a earnings. 
P Dividend and yield based on prospectus or other offie/el eathnataa lot 1982. 
Q Gross. T Figures assumed. * Figures or report awaited, t Cover allows for 
conversion of shares not now ranking for dividend o» ranking only lor restricted 
dividends. 5 Placing price, p Panes unless otherwise indicated. 7 Issued by 
tender. U Offorad to holders of ordinary she rag as a “rights.” ••Issued by way of 
ceoinikaation. E| Rwieodnatf. tl Issued hi conneedM Mb raoratoianiM. 
meiuar or oka-over. OH Introduction. Q issued to former prate ranee traldam. 
« Allotment tetters (or hiHy-peid). • Pmnalooel er perdy-paid aHotmant Mm. 
» ivnh warrants, tt Dealings under special Rola. 4 Unlisted Securities 
M irket. tt London Listing, t Edectiva isane price after scrip. T Formerly 
daeft ta wider Rule l63f2Ua). tt UnH ocun prising ftw oedtaeq* mi Mm 
C ap. shores. A Issued Irca as an cntulamcni to Ordinary holders. 


ACTIVE STOCKS 

Above average activity was noied in the following stock s vPStorday 


Stock 

pence 

chanqo 

Stock 

pence 

change 

Bar Inds 

.. . J15 

+ 2 

Lnn'.dalr Umv 

72 

+ C 

RP 

. . 372 

+ 2 

MEFC 


- Q 

Euro Femes 

76 

+ 4 

Mir.1 Hldqs . . .. 

1M 

* 4 

Hambin Ido . .. 

.. . 307 

+ 6 

Shell Trans 

41B 

4- 2 

tend 5 tculiliCS . . 

274 

- 7 

Tpre-Consuto**' 

. . 46 

4- R 

Lloyds Bank 

. 408 

-10 

Ultramar 

443 

MO 


FRIDAY’S ACTIVE STOCKS 

Ccccd on bargains rctoidad in S.E. Ohicml List 


Friday's 
No. ol clor-mq 


Friday's 
No nl closing 



r-’ico 

pricn 

Day’s 


price 

pries 

Day’s | 

Stotl: 

changes p»neo 

Change 

Siocl 

changes onneg 

change 1 

Shell Trans 

IS 

416 

+ 14 

BP 

10 

i2Q 

+ B ! 

Ti icenliol 

.... 15 

220 

+ 8 

BrriTT 6 Hlmshr 

10 

760 

+45 

Ijrulrvcr 

1J 

fine 

+ S 

Han-1 ct Sid . 

10 

324 

+ 8 } 

GEC . 

12 

835* 

+ 5 

LASMO 

in 

350 

■*■10 - 

Bio* nn Hill 

Pro 11 

47S 

+ 1*1 

R.inl- Qrg . . 

10 

178 

- 4 ! 

Firr.sry 

• . 11 

T77 

+ 7 

Ultramar 

in 

433 

T IB 

Bo-nier 

10 

223 

- 9 

Bat Inds .. . 

9 

413 

- 7 ! 


FT-ACTU ARIES SHARE INDICES 

Thut IrAccs art the joint campiUtion of the Firatciai times, the institnle of Actuaries 

and the Faculty *f Actuaries 


EQUITY GROUPS 
A SUB-SECTIONS 

Figures In parwithtata ihow mwbar of 

■ stocks pw section 

1 capital coon raw — 

2 Building Materials (23} 

3 Contracting, Construction (28) 

4 EfcctlUahCn) 

5 EnglheerlitgCoblrKtorsC?) 

_ V liedmlcal Engineering (67) 

-8 Matahaod-htafal Forming (111 

9 Motors ( 21 ) — , 

10 Other Industrial Materials 08) 

n CONSUMER BMUPC201I 

72 Bnr*ersandDlstatan(21) 

25 FeedMaftAcfnr(ng(22) 

26 FoodRataiHngCM) 

27 Htahh and Household Pnxkicts (8) _ 

29 Leisure (24) — 

32 N«npapw,l**WWBgn2) 

S3 Padagtegand Paper (14) 

3< Store* (45)—. 

35 TextU«aC23)*. 

- 30 To b a c cos CT 

99 Other Consumer 05) 

~41 OOM SHOPS (781 — — 

42 .amtaeahW.^- 

44 Office C g u l pffrrrf W — 

45 Shlpp»M»iMTi*«m«*G3>*-- ■— 

40 Mriarihraaou tHaa. assess 

ST WU8TBAL«WBrteff7? 

5i o ana — 

sr gjOgAglgC Lj. -sag as 

3T rilfANCIM. 8RWP 0171 

S Otaonnf Hobsm(9) 1 

45 lnuMMtUWtW. -. 

46 Inuranee (Corapeslte) (SO) 

67 InsawKeBrokmCn 

68 Merctant Baris (12 )~-mx 

69 Property (49)- — » ■ *"— 

78 Othf Fkande * 

71 hnestnieiR Trusts (U2I. 

81 Mlnteg Finance (4) ■■■ . 

92 OutfWBi Tradm (17) — — ^ 

m ALLJHAK IW8X 17301- — 


Mon April 26 1982 


Index Hat's 
No. Chrage 
% 


EsL Gras 
Earthgi Dfe. 
YWd% YMd% 
(llax) (ACT 
N30*) 


ftf Than Taei Ytar 

tad M M bo m 

23 22 & 20 bnrtK. 


Index Index Index (fidex Index 

No. No. No. No. Ne. 




Km 

Fif 

April 

April 

2b 

23 





NEW HIGHS AND 
LOWS FOR 1982 

The fbllawino quotations m (he Share 
Inlcrmatico Serene yortenlcv attained new 
Highs and Lows tor 1982. 

NEW HIGHS (66) 

CORPORATION LOANS (1) 
Gl'Sgevr 9I.0C '80-BZ 
COM 'WEALTH * AFRICAN LOANS J1J 
Aust. 0 PC 19BVB3 

AMERICANS (10) 

AOhott lAht. Ford Motor 

Bethlehem Steel I B.M, 

Crticwo Lowet 

C.ty Irv. Cm. PI. Qoaher O^s 

Fin. Cpn, America Transanterlra 

CANADIANS (1i 

Bell Canada 

BANKS (SI 

Atoemene Deutsche Bank 

Clive Discount Honskons Shanghai 

Commerzbank 

BUILDINGS <4t 
Jar»ls (J.l launac 

SGfl Travij * Arnold 

CHEMICALS «S1 

BOSF Novo IndL A.5 S 

Haechst 

ELECTRICALS (31 
A.B. Electronic ESI London 

A & G. Sec. Eire. Kode Int. 

Autrmaied Srruritv 

ENGINEERING Cll 
Lo-ker (T.) St»«»ley Inda. 

Do. A ' 

FOODS (2) 

England (J. I » Fisher fa.) 

- INDUSTRIALS <») 

Camrex Sandhurst MMg. 

Londsdale Universal Smith 4 Neohew 
Pe-Tiland Standard Fireworks 

Reed Executive Whatman Reeve Ang. 

INSURANCE (Si 
Alexander Alexander Sun Life 
Hoc Cnv. Willis Faber 

Stewart Wrla irtson 

LEISURE <S> 

Grampian TV A TVS N-V 
TSW 

MOTORS (21 

Gen I. Motor* «*«n Srm*b car Auction 
PROPERTY (21 

Me liter nev Swire Prow, 

TEXTILES (2) 

1 Lvies (S.J Trafford Carpets 

TRUSTS <1) 

TR. North America 

OIL Sr GAS ID 

Barmah Rovet Dutch 

CCP North Sea 

RUBBERS (D 

Cons. Plants. 

MINES (5) 

, Bougainville M.I.M. 

1 CfiA Swan Resaorce*. 

Cuftas Peclfri 




NEW LOWS (29) 

CANADIANS (31 

Can. Ins Ban*- Roval Bk. 01 Can. 

Can. Par Hit En*. 

BANKS (21 

Lio-ds Bank Standard Chartered 

ENGINEERING (1) 

M pi ins 

FOODS 121 

Cullen* A Danish Bacon 

INDUSTRIALS MJ 
Amato d Metal De La Rue 

Chrotit-Tyler punhlll 

MOTORS (1) 

Haitwells 

PROPERTY (71 

Am* McKay Seq. 

Cemrovtnclal Prop. HWg. i, In*, 

lmrv Prop. United Real 

MrPC SHIPPING (1J 

Lyle Shipping 

TRUSTS (1} 

Britannia Arrow 

OIL A GAS (41 

Collin* (K.i Energy Sources 

Energy Cnoital NCC Enemy 

OVERSEAS TRADERS tt) 
Cm*r Houaa 

TEAS ra> 

McLeod Birttel • Mcteod RmmI 

fl.doc -City. Pref. 


RISES ANn FALLS 
YESTERDAY 


Br?ri»h Fund* 

CnrpnS. Own. and 
Foreign Bonds ... 

. Industrials 

Financial 8 Props. 

Oita 

Plantations 

Minos 

-Othara 


Rises Falfs Same 
Rises Falls Same 

17 

18 

• 58 

14 

15 

47 

219 

181 

903 

129 

108 

276 

48 

21 

38 

4 

2 

17 

79 

11 

70 

81 

28 

49 

591 

373 

1.438 


WORLD VALUE OF THE POUND 


The table balow gives the latest 
available rats of exchange for the 
pound against various currencies on 
April 26. 1862. In some cases rates are 
nominal. Market rates ar* the average 
of buying and aelling ratsa except 


where ihay are shown to bo otherwise, hp: (P) fused nn U a. dollar panties rare: (chi convertible Tate: (In) Rnan- 
In soma cases market rates hove bsen and goinn sterlliw; dollar rains: (5) cial rates: (e*C) axchanga certificate 
calculated Irom these of Jorcion mcmhnr nl the ntciling area nthor than rate: (k! Schoduled Territory: (nc) 
currencies fo which they are tied. Scheduled Territories: (TJ tourist rate; non-commorcial rate: fncrm) nominal; 

Abbreviations: (A) aporo'lmato rate, i.oerl basic rate: (bil buying rate: (o) otheial rata: (sg) selling rate. 


no direct quotation available: (F) free (BL; bonkers* rates: (cm) commercial 


(o) otheial rata: (eg) selling ratB. 


PLACE AND LOCAL UNIT 


Afghanistan Afghani 

Albania LeK 

Algeria Dinar 

‘French Franc , 

Anaorra ; - i Spanish Peseta 

Angola — Kwanza 

Antigua IS) E. Oartbbean 3 

Argentina Ar. Peso 

Australia ft) .... Australian 8 


Austria Schilling 

Azores .. ■ Portugu se Escudo 

Bahamas (g) Ba. Dollar 

Bahrain (Si Dinar 

Balearic Isles Spa. Pesata 

Bangladesh (Si Taka 

Barbados (Si .... Barbados S 

Belgium B. Franc 

Belize B * 

Benin C.F.A. Frano 

Bermuda (Si BdaS 

Bhutan Indian. Rupee 

Bolivia Bolivian Peso { 

Botswana (S> Pula i 

Brazil ..... Cruzeiro It 

Brit. Virgin Isles tS) U.5. 5 I 

Brunei (SI Brunei 8 1 

Bulgaria 7. Lev r 

Burma Kyat I 

Burundi Burundi Franc I 

Cemero’nRepubllcC.F.A. Frano i 

Canada Canadian S 

Canary Islands SpanishPesate I 

Cape Varda Isle.... Cape V. Escudo 
Cayman Islands fSi Day. is. 8 
Cent. Afr. Republic C.F.A. Franc 

Chad C.F.A. Frano I 

Chile C. Peso ! 

China.. Renminbi Yuan I 

Colombia..- C. Peso 

Comoro Islands.. .. C.Fjl Franc 
Congo iBrazavlIls^ C.FJV. Franc 

Costa Rica Colon 1 

Cuba Cuban Paso ! 

Cyprus (Sj> Cyprus £ 

Czechoslovakia. .... Koruna 

Denmark. — , Danish Krone ' 

Djibouti - Fr. • 

Dominica 181 E. Caribbean B ! 

Dominican Rapub. Dominican tPeso) [ 


• VALUE OF 

• £ STERLING 


99.00 
1 10.06 
! 7.3910 

, 10.985 

1B6.30 
: jrCMt n<a 
. i (T) n .-a 
[ 4.8D 

21,195,0 i3> 
1.6885 
! 29.605 

138.00 
177.60 
0.667 
186.20 

38.25 
3.5520 

item! 79.45 
Ufni B6.8S 
3.5520 

649.25 
1.7760 
16.47 

(cm) 78. 16 
(FilAi 177.60 
i 1.6595 
270.47 
1.7760 

L 3.76075 

I 3.7427 

I 11.39 

I 158.165 

| 549.25 

2.1700 
I 186.20 
64.45 
1.4800 

549.25 
I 549.26 

; (Bkl69.05 

3.2819 
1 (Fl 109.36 

549.25 
549.85 

! ifOi 35.52 
\iFi 71.04 
! 1.4375 

1 0.8225 

‘ 'fcomi 11.00 

me 19.16 
VfT* 16.65 
J 1«95 

; 303 (sg) 

! 4.80 , 

I 1,7760 


Ecuador Sucre 

Egypt- Egyptian 9 

Equarorfai Guinea Eleuc/c 
Ethiopia Ethiopian Birr 


Falkland IslandtfS) 

Faroe (stands. 

FIJI lalnds 

-Rnland - 

France 

PranchCrtyin Af*.„ 

French Guiana 

French Pacific la ,. 

Gabon 

Gambia (Sj 

Germany (East). 

Germany (West).... 

Ghana (S) .. .. 

Gibraltar (K1 

Greece 


Falkland Is £ 
Danish Krone 
FIJ IS 
Markka 
French Franc 
CJ\A. Franc 
Local Franc 
CJ=.P. Frano 
C.PJL, Frano 
Daiaaa 
Ottmark 
Deutsch Mark 

Cedi 

Gibraltar C 
Drachma 


i 1(0)44.20 
HFi 76.37 
(Ui 1.59 
572.3 

I (P) 3.6000 

1.0 - 
14.295 
1.8237 
8.1 SB 
10.985 
549.25 
10.985 
iBO.isg) 
549.25 
4J 

. - 4^175 

4^175 

. 4.87 

1.0 

110.6075 


PLACE AND LOCAL UNIT 


Greenland Danish Kroner 

Grenada *Si E. Caribbean ? 

Guadeloupe Local Franc 

Guam u.5. F 

Guatemala Quetzal 

Guinea Republic.^ Sv|l 

Guinea Bissau Peso 

Guyana iSl Guyanese S 


Haiti 

Honduras Repub.. 
Hong Kong IS, 

Hungary 


Iceland 'S*. 

India iSi 

Indonesia.. 

Iran 

Iraq 

Insh Republic ik-, 

Israel 

Italy 

Ivory Coast 

Jamaica iSi 

Japan 

Jordan <Si 

Kampuchea. 

Kenya iSi 

Kiribati 

Korea (Nth*.. 

Korea iSthi 

Kuwait 


Laos - New Kip 

Lebanon Lebanese. £ 

Lesotho Loti 

Liberia Liberian F 

Libya Libyan Dinar 

Liechtenstein........ Swiss Franc 

Luxembourg Lux Franc 


Gourd 
Lempira 
H.K. S 


1. Krona 
Ind. Rupee 
Rupiah 
Rial 

Iraq Dinar 
, Irish £ 

Shekel 

Lira 

C.F.A. Franc 

Jamaica Dollar 
Yon 

Jordan Dinar 
Riel 

. Kenya Shilling 
Australian 6 
Won 
. Won 

. Kuwait Dinar 


- VALUE OF 
£ STERLING 


14.259 
4. BO 
10.955 

I. 7760 

J. 7760 
39.00 
69.15 

5.2800 


28.2054 

16.47 

1.151.85 

146.00'sgi 

0.52205 

1.2200 

56.15 

2,326.50 

549.25 


2,131.2 

18.725 

1.6825 

1.71|||| - 

1,279.58 

0.507 


Macao .- ... 

Madoira 

Malagasy Republic 

Malawi i Si 

Malaysia «Si— .. .. 
Maldivs Islands iSi 

Mali Republic 

Malta iSi 

Martinique 

Mauritania 

Mauritius (Si 

Mexico 

Miqueicn 

Monaco. 

Mongolia 

Montserrat. 

Morocco 

Mozambique. 


Pataca I 

Portug'so Escudo 1 

MG Franc 
Kwacha I 

Rinqqll 

Rufiyaa ! 

Aloli Franc | 

Maltese £ 

Local Franc ! 

Oupuiya L | 

M. Rupee i 

Mexican Peso i 

C.F.A. Franc i 

French Franch ; 

lUgnk 

E. Caribbean $ I 

Dirham ' 

Metical I 


Nauru . ...Australian Dollar 

Nepal NeDalese Rupee 

Netherlands .'..Guilder 

NetherlandAntillcsAntlliian Guilder 

NewZaalondtSi N2. Dollar 

K Icarag ua Cordoba 

Niger Republic C.F.A. Franc 

Nigeria (Si- Naira 

Norway.- - Norway Krona 

Oman Sui'ata of (S)Rlal Omani 

Pakistan Pakistan Rupeo 

Panama Balboa 

Papua N.GutncttiSiKina 

Paraguay Guarani 


' 20.34 

I 1.7760 
1.2745 
! “O- 773.03 
I f(Fi 276.56 


PLACE AND LOCAL UNIT 


VALUE OF 
I £ STERLING 


Peru Sol 

Philippines Philippine Peso... 

Pitcairn Islands .Si i^ewSatandS ' 

Poland Zloty . . . i 

Portugal Portugese Escudo: 

Puerto Rico, U.S. 5 


exe (All, 066.0 
14.64 

2.310D 

, ( (Cmll48.86 

: I m«8-.« 

>: 128.00 
1.7760 


I 10.65 
128.00 
, 649,25 

' 1.9125 

4.124.25 
13.40 

I 1,096.50 
0.720 
! 10.985 

| 37,00 

i 18.925 

1 81.96 

[ 649.25 

; 10.985 

<6/5.781 1 lj 
I 4.80 
10,25isg) 

| 62.80 

1.6825 

£3.50 

4.665 

3.1730 - 

2.3100 

17.70 

549.25 
1.103189 (eg) 

10.75 


Qatar ISi Qatar Ryal I 

Rounion llcde la ..French Franc ; 

Romania Leu I 

Rwanda. . Rwand Franc 

SL. Christopher iS'E. Caribbean S 

SI. Helena SL Helena £ I 

S. Lucia EL Caribbean 8 

St. Pierre Local Franc i 

St. Vmccnt iS) ... . E. Car bbean S 

Salvador El Colon ' 

Samoa American ..U.S. s : 

San Marino Italian Ura 

Sao Tome A Prm ..Dobra I 

Saudi Arabia Ryal : 

Senegal C.F.A. Franc , 

Seychelles S. -Rupee ' 

Sierra Leone iSi . . Leone i 

Singapore >Si Singapore S . 

Solomon islandsiSiSolomon Is. s ' 

Somali Republic . Somali Sh<lllng-/11 
Somali Republic.. ..Somali Shilling iZj : 
South Africa iSu. ..Rand 
South West African ! 

Territories iS* ,_.S. A. Rand l 

Spain Peseta i 

Spanish ports in ; 

North Africa Peseta .i 

Sri Lanka is, .S. L. Rupee 

Sudan Republic ....Sudan £ iui 

Surinam S. Guilder 

Swaziland iSi «... . Lilangeni | 

Sweden 5. Krona 

Switzerland Swiss Franc | 

Sym_ ^Syrla a’ : 

Taiwan . ' Now Taiwan S • 

Tanzania iSi...... ..Tan. Shilling ! • 

Thailand ..Baht i 

Togo Republic C.F.A. Franc - } 

Tonga {elands rSi ..Ha'anga 

Trinidad IS) .Trinidad 5 Tob. 8 1 

Tunma Tunisian Dinar 

Turkey .T.-..:...TurfciSh Lira - • 

Turin it Caicos U.S, S 1 

Tuvalu .Australian s . | 

Uganda (Si Uganda Shilling ! 

United StatPS„. — U.S. Dollar . ( 

Uruguay. Uruguay Peas j 

Utd. Arab Erhlratesu.A.E. Dirham . 

U.S.5.R. Rouble i 

Upper Volta C.F.A.' Franc , 

Vanuatu iVatU 

vanuaru i Aust. Dollar 

Vatican Italian Lira 

Venozuala Bolivar 

Vietnam LDong ! 

Virgin Island U.S. u.Si Dollar 

Westom Samoa (S.) Samoan Tala i 

Yomen (Nth) Ryal 

Yemen iSthi ,.S. Yemen Dinar j 

Yugoslavia New Y Dinar 1 

Zaire Republic' ..Zaire 

Zambia Kwacha 

Zimbabwe. ...Zimbabwe's * ! 


6.44 

11.985 
(CnuT.91 
(n,c* 19.47 
168.87 

4.80.. 
1.0 
4^0 
10.985 
4.80 . 
4.43 
1.7760 
2 . 326.50 

71.55 
6.07 
549.25 
11.55isq) 

2.1727 
3.76075 
1.6195 
{All 1.27 - 
22.13 
1-35 BS 

1.8595 - 
166.20 : 

186.20 
36.45 
.1,5984 
' 3.1790 . 
1.B595 
10.42 . - 
S.47S 
[A J 10.0 
67.48 

16.55 • 
40.64 
549.85 
1.6623 
4.2684 
0.979 1 sg) 
261.84 
1.7760 
1.6B2S 
150.0 
1.77«J 

ffcm)31.34 
l(fn)21JW 
6 JO 
1^805 
549.35 

176.60 ‘ 
1.6835 . 
2.326,50 
7.61 

{©>3.8478 

OVK25mj 

1-7780 

34» 

S.OQful 

(AW.6065 

81>411 

10.078008 

1.6160 

1J050 


J/{©>3 

• Irm, 

i.' 


•That psrt of the French community In Ulrica formerly French West Africa or French Equatorial Africa, t fiupees per pound, t General rates of oil and Iran 
exports M60. ■•Rare is the transfer market '(connot’ndl. ft Now one e>tnnri na. (U) Unified rate. Applicable tin all transactions except countries havjna a 
bilateral agreement with Egypt and who are not members of IMF. ((() Based en gross rates against Russian rouble. (1) Parallel exchange rate for )h..mi .i 
( 2) Eaporu, non-esaemial imncns and iransler. (o) Now one rate. |J) cuiRlul goods. q 


















- CURRENCIES: MONEY and GOLD 

a 


Pound recovers 


Financial Times Tuesday April 27 

L' ' •.'< 

FT UNIT TRUST INFORMATION “ ’ 


Sterling recovered from the 
lows seen in currency markets 
yesterday as the market awaited 
fresh developments in the FaJk- 
lands crisis. News of troop 
clashes on South Georgia had 
weakened the pound in Far East 
markets overnight bat the situa- 
tion in London was much dearer 
when trading commenced yester- 
day morning. 

The dollar was weaker after 
Friday's better - than ■ expected 
TLS. money supply figures with a 
consequent (fall in Eurodollar 
rates. There was also a fail in 
the inflation rate and comments 
by President Reagan that 
interest rates were likely to fall 
also ensured a fall in the dollar. 

The Belgian franc improved 
within the European Monetary 
System as the Italian lira 
replaced it as the weakest 
currency. The D-mark remained 
the firmest member, followed by 
the Danish krone. 

STERLING — Trade weighted 
Index 89.5 against 89.0 at noon 
and at the opening and 89.8 on 
Friday (87.9 six months ago). 
.Three-month interbank 13b? per 
cent (16i= per cent six months 
ago). Animal inflation 10.4 per 
cent (11 per cent previous 
month) — Sterling opened at 
$1.7650 against the dollar but 
improved with help from the 
Bank of England to $1.7710. 
During the afternoon demand 
from the U.S. pushed it 
to a top of SI. 7790 and it closed 
at S1.7755-1.776S. a rise of 45 
points. Against the D-mark it 
slipped to DM 4JJ175 from 
DM 4.23 and SwFr 3.4750 from 
SwFr 3.4S50. In terms of the 
French franc the pound closed 
at FFr 10.9S50 down from 
FFr 11.0450 and Y423} from 
Y4271 against the yen. 

DOLLA R — Trade weighted in* 
dex 114JJ against 114.9 on Fri- 
day and 1093 six months ago. 
Three-month Treasury bills 1238 
per cent (13.20 per cent six 
months ago). Annual inflation 


rate &8 per cent (7.7 per cent 
previous month) — The dollar 
fell to DM 2.3745 against the 
D-mark compered wtih DM 2.3870 
on Friday and SwFr L9565 
from SwFr 1.9690. It was also 
down against the Japanese yen. 
closing at Y238-4 from Y241.3. 

D-MARK — EMS member 
(strongest). Trade weighted 
index unchanged at 123.7. 1224) 
six months ago. Three-month 
interbank 935 per cent (11375 
per cent six months ago). 
Annual inflation 52 per cent 
(53 per cent previous month) — 
The D-mark showed mixed 
changes at yesterday's fixing in 
Frankfurt The dollar fell to 
DM 23717 from DU 2.3991 and 
sterling slipped to DM 4.1950 
from DM 43510. The Swiss franc 
was also weaker at DM 1-2108 
from DM 1.2160 while the French 
franc improved to DM 38.33 per 
FFr 100 from DM 38.315. 

DUTCH GUILDER — EMS 
member (third strongest). 
Trade weighted index un- 
changed at 114.5, 114.0 six 

months ago. Three-month inter- 
bank 81 per eent (12 A per cent 
six months ago). Annual infla- 
tion' 6.8 per cent (unchanged 
from previous month) — The 
Dutch guilder was slightly 
firmer within the EMS yesterday 
and rose at the fixing in Amster- 
dam against the dollar sterling. 
The latter fell to FI 4.6580 from 
F] 4.7140 and the dollar was 
weaker at FI 2.6340 from 
FI 2.6615. 

JAPANESE YEN — Trade- • 
weighted index 1383 against 
137.0 on Friday and 1373 six 
months ago. Three-mouth bills 
7.09375 per cent (7.40625 per 
cent six months ago). Annual 
inflation 3.1 per cent (3.3 per 
cent previous month) — The yen 
was firmer against the dollar is 
Tokyo yesterday as the dollar 
reacted to lower money supply 
and consumer price figures. The 
dollar closed at Y23S.G5 down 
from Y240 at the opening and 
Y240.75 in New York on Friday. 


spread C One month 

1.7*50-1 .7790 1.77SB-1.776S O.T3-O,23e te 
2.157S-2.170S 2.1896-2-1705 tLS-0^5c <5* 
4.6 ava-fflb 4 -S8-4.69 2VT«c pm 
79.00-7940 79.40-79.50 15- 25c db 

14 -20-14.31 14.23-14^0 G>*-7 J »re db 

13100-13220 13195-13205 fl.S9-0.70p dis 
4.18-433 4£lV43h IVI^pf pm 

12735-129.00 127.76-12835 1 85-646 c da 
T85.00-786.50 188.10-18830 40.75c db 


April 26 spread 

U.S. 1 .7150-1 .779 
Canada 2.1576-2. T70 
Nothin d. 4.6S l 2-4.69>2 
Belgium 79.00-7930 
Denmark 1430-1431 
Ireland 13100-1-222 
W. Gar. 4.18-433 
Portugal 1273S-129.0I 
Spain 185.00-1863 
Italy 2316-2329 
Norway 10.69-10.77 
Franca 1038-1131 
Swadan 1036-1032 
Japan 419-426 
Atrttritf 293539.70 
Swftti 3^-3 AS 1 * 


% Three % 

pa- monte jm. 

-132 0.42 -0,524b -1.06 
-1.66 1,06-1.15d» -2.03 
5.44 6V6 pm 534 
—3.02 65-75 dis -352 
-5.77 18%-19»,dte -5.40 
-834 1.7T-1.8Sdi* -5.8S 
432 5Vtt pm 4.6Z 
-3422 350-1190db -24.06 
-3.71 160-205 db —332 


2325V23Z7 1 * 18V2l^ire db -1032 68-81 db -1033 


r 10.69-10.77 10.7^10.75^ SVfeora db -4.67 7V8 3 . db -188 

1033-1131 1038-1039 5^-71* di* -633 Z7V30>jdb -1036 

i 1036-1032 -1041Viaej Wm pm 0.86 2V-1 5 ! pm 0.77 

41*4 28 4Z3-424 2.60-2.40y pm 7.08 6.95-6-75 pm 647 

29.45- 23.70 28.58-2953 16-IZSfiro pm 5.78 33-32< 2 pm 433 

3.45- 3 .48 1 , 337-3 JJS 3-ZScpm 9.50 7VW* pm 8.63 

firigtan rate fa tar convertible franca. Financial franc 883038.90. 
Six-month forward dollar O87-0.97c dis. 12-month 1.40-1 .55c dis. 


THE DOLLAR SPOT AND FORWARD 


Day’* % Three % 

April 28 spread Close One month p.a. month* p .a. 

UKt 1.7650-1.7790 1.7755-1.7765 0. 13-0 33c db -132 0.«-0.52di* -136 

ksteorit 13560-13600 1357P-13S90 0.70-0.60c pm 535 130-1.65 pm 4.73 

Canada 13200-13220 13215-1.2220 0.064.06c db -0.74 03W30db -0.92 

Nethtod. 2.6256-2.6400 2.SS0-23400 130-1.40e pm 6.61 4.23-4.13 pm 635 

Belgium 44.85-44.75 44.72-44-74 Media -2.01 25-30 db -2-51 

Danmark 8.0300-8.0550 8.030*8.0400 3.10-330ore db -4.77 830-8.80di* -4.25 


W. Gar. Z3830-23785 2.3740-23750 1.15-1 .TOpf pm 
Portugal 72.00-7230 72.00-72.50 100300c db 

Spain 104.60-104.80 MAID-10436 2D30cdfe 
Italy 1308V1311 1308V-1 310»« W-12fire db 


Spain 

Italy 

Norway 

France 

Sweden 

Japan 

Austria 1 

SwitZ. 


5.68 3.42-3.37 pm S.72 
-33.22 200-850db -2333 

—2.88 70-*S db —2.9* 

-10.06 31-34 dis -932 


6.0425-6.9600 8.04505.0550 1.70-Z.OOors db -3.68 230-2.60dia -1.62 


6. 1725-6. 1925 6.18506.1908 ZV37«c db 
5358053740 5360053700 030-0.75are pm 
236.1023835 Z383023M5 132-1 34y pm 
1fi.6Z-14.69 ?e.6S-T6.e9 Pm 


—538 10V114, dis -7.12 
1.G9 2:65-2.50 pm 1.75 
7.96 4.65-4,45 pm. 7S 
4.67 25V22* pm 532 
■KX38 4.604.60 pm 9.49 


rtr 1fi.6Z-14.6S ?e.6S- T6.es n-SHpre pm 4.S7 pm 

z. 1.9600-13800 13S6O13670 1.73-135C pm 1038 4.604.60 pm 

t UK and Ireland are quoted in U.S. currency. Forward premiums and 
discounts apply to tha U.S. dollar and not to tha individual currency. 


CURRENCY MOVEMENTS CURRENCY RATES 


Bank of Mora** 1 
England flwsnty 
Index |Chaages% 

Sterling. { 89.5 j ^-35.6 

V3. dollar. 1X43 +63 

Canadian dollar... 1 88.3 —17 jb 

Austrian schilling. I 117.1 +253 

Belgian franco. J 95.5 | —13 

Danish kroner. 853 • —13.1 

Deutsche mark. 133.7 ! +473 

Swiss franc 149.5 i +100.6 

Builder I 1143 +21.3 

French franc ' 783 i —15.0 

Lira.- .. 54.0 | —583 

Yea — ? 1583 I *883 

Based on trade weighted changes from 
Washington agreement December, 1971. 
Bank of England Index (base average 
1975=101%. 


April 85 


IBank! Special European 
rate | Drawing Currency 
% Rights Units 


OTHER CURRENCIES 


Sterling. — — j 

U.S. 8. 12 i 

Canadian 8J 1.15.38' 
Austria Sch.' 6I9I 
Belgian F._J 14 I 
Danish Kr. J 11 ; 

D rnark™ I 7(fl 

Guilder.. | 8 

French Fr._. 9b 

Lira _ 19 | 

Yen—. j 5b 

Norwgn. Kr. 9 r 
Spanish ptm.. 8 ; 
Swedish Kr. 10 

Swiss Fr ; 5b 

Greek Dr’ok. 1 20b 


EMS EUROPEAN CURRENCY UNIT RATES 


April 26 


EXCHANGE CROSS RATES 


April 26 


IPoundSt'rilngl U3. Dollar j Deutschem'kj Japan's* Yen; FrsnchFrano; Swiss Franc | Dutch Guild 1 } Italian Ura (Canadla Pollan Belgian Franc 



Dutch Guilder 
Italian Ura 1,0°° 


Canadian Dollar 
Belgian Franc 100 


FT LONDON INTERBANK FIXING (11.00 a.m. APRIL 26) 


5 months U3- dollars 


6 months U3. dollars 


bid 14 11/IB Offer 14 1SI16 I bid 14 11116 offer 14 15(16 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 


j U3. I Canadian | Dutch I Swiss French 

April 26 Sterling Dollar I Dollar I Guilder j Franc D-mark Franc 


Short term i 13b-13b 

7 days' notice ... ; 13b-l5b 

Month 1 15hj-13n; 

Threa months. — / I3fs-13T® 

Six months - 137g-l4 

One Year I 13?a-14 



83b 1 

6 83b 5 

3b 3ii3rif 

6 Srf-B* 4 

6b BrfcBre 
6b OA^ii 



SDR linked deposits: one month 13*»-13’it per cent; three months 13*j»-13»» par cone fix months 13V13** 9** cent: one year 12*u-13*» par cant. 

ECU linked deposits: one month 13U|».i4*i» par cone three months 14V14b per cent; she months par canC ona ywr 13*»-13“» per cent 

As. an S (dosing rates in Singapore): one month per cent three months par cant: six momhe 14 a »-14 u ii par cam; one year 14'i*-14 n » par 

cent. Long-term Eurodollar wo years 14V-15* per cent; three years 15-16b par cane four years ISV-TS*. par cane five y ow * 161-164 par cant: nomtas! otosmg 
reus. Short-term rates are caH for U.S. dollars, Canadian doHsrs and Japanese yen; others wo days* notice. 

The loll owing rates were quoted for London doner certificates of deposit: one month 1435-14.05 par cam: three months 1435-14.65 par cant: srx months 
14.50-14.60 per cone one year 1430-1430 per cent. 


MONEY MARKETS 


London rates advance 


3 - month 

■ ■ - ...» • 

HUcIMuaC 

Kale 


Lotion clearing bank base 
lending rale 13 per cent 
(since March 13) 

Interest rates advanced in 
nervous London money market 
trading yesterday as further 
confrontation between the UK 
and Argentina over the Falk- 
land Islands appeared more 
likely following developments 
at the weekend. Three-month 
interbank money rose to 
13 15/18 per cent from 13} per 
cent. 

Day-to-day credit was in 
short supply, and the Bank of 
England gave assistance of 
£471m. In the morning the 
authorities forecast a shortage 
of about $450m, and gave help 
of £466m by buying £20m bank 
bills in band 1 (up to 14 days 
maturity) at 13i per cent; 
£227 m bank bills in band 2 
(15-33 days) at 13 per cent; 
£d5m bank bills in band 3 (34-63 
days) at 121-1 2 15/16 per cent; 
£Sm Treasury bills in band 4 


MONEY RATES 

NEW YORK 


(64-91 days)! at 12J per cent; 
£50m local authority bills in 
band 4 at 1 21 per cent; and 
£66 m bank bills in band 4 
(64-84 days) at I2M2 15/16 per 
cent. 

In the afternoon the Bank of 
England bought a further £Sm 
bank bills in hand 1 at 134 Per 
cent 

The major factors influencing 
the market were: bills maturing 
in official bands, and a net 
market take-up of Treasury bills . 
— £475m, and Exchequer trans- 
actions — £92ra, partly offset by a ; 
falll in the note circulation ‘ 
+£352m. 

Overnight money moved within : 

a narrow range of 12}-14 per j 
cent, while seven-day funds con- 
tinued to firm, to 13} per cent 
from 13U per cent. 

In Frankfurt call money was 1 
steady at 9.45 per cent, with < 
market liquidity comfortable 1 
despite fbe draining of DM 5.5bn. * . 
through a maturing 34-day securi- ! 

LONDON MONEY RATES 


I N D J F ■ A | 

7981 1382 J 

ties repurchase agreement 
Action by the Bundesbank to 
renew the facility is not 
expected, as part of .the 
DM 10510m central hank’s profit 
transferred to the Federal Gov- 
eminent is likely to add to 
market funds in die near future. 

In Paris call money rose to 
16$ per cent from 164 per cent 
The can rate was cut by ) per 
cent last Monday- in response to 
the French franc's improvement 
in the European Monetary 
System. 


Prime ran 

Fed. funds Hunch-rime) 
Treasury bills (13-wcok) — ~ 
Treasury bills (2S-mak) — 

GERMANY 

Special Lombard WMm rm 
Overnight rate 
One month 

Three months — 

Six months — • — 

FRANCE 

Intervention rate 

Overnight rate — — < « 

Ono month — — — 

Throe months 

Six months — — ■ 

JAPAN 

Discount rata — r.r, ~ .~. i 

Cell (unconditional) 

Bill discount (three-month)_ 


W» w 
WrVK 

1238 

1232 


_ ; Sterling : 

April 26 leortlfwate ! InterMnk 
1982 | of deposit 


OventlghL. — 

2 days nonce- — 

7 days or. — 

7 days notlco_ — 

One month 13 Tg. 13(4 

Two months 13ig 13^ 

Three menOraj I5|i 13JJ 
Six months— 1 1541 15^ 
Nine months.— I 13f£-I5^ 

Ono year I 13+J-13 5 , 

TwO yeare... • - 


AWhority inegetiable 
deposits j bonds 

1312-1358 — 

1358-13 T; — 


L3ta ISlfe 

I 13«-14 
, 137a-14 
f 1378-14 
I 13* 14* 

' 1518-14^ | 


133*-13t« 

15T S 


14Ifl41« I 
141*. 141* 1 
1418-141* I 
1578.131s 
1418-1418 ; 
I4U-1378 : 


- 1570-1414 

155* 14-1414 

15Tb 141* 

137a 141* 

14 — 

34 — 

14 — 


Local atrth OrifeS end fmenee Imuies seven days' nodoe. others seven days fixed. Long-teon toed eudicriry mortgage 
rates nomirvalty three years I* 1 * PW «nt-, tour years 14^ per cent fiva ^sare 14^ per cent $6ank brtl rates in table 
are buying races for prune paper. Buying rates tar taur+noodi benfe m s f(3V13^ per c a n e four* monte Bade biH* 
13 7 i oar cent. 

Approx ensts setUng rates for one month Treasury bUfs T3-13*» per cent: two monte 12V13 par cent; three menihj 
1271-13 par cam. Approximate setting ran tor one month bank brti» 13H, pgr cant; two month* 13 per com and 
threa months 13 per cent: one month Bade bids 13?x par esne two months 13^ per cent: three monte 13H per cent. 

Finance Houses Base Rates (published by the Finance Houses Association) 14>, per cent from A pH 1 1382. London 
end Scottish Clearing Bank Rates for lending 13 pgr cent. London Clearing Sank Deposit Rotes for a uma at seven days' 
jwtrie 50- 10V per earn. Treasury Bills: Average tender ret** & discount 12.8910 oar cent. 

Certificates St Tax Depose (Series 5) 134 per. cent from March 8. Deoasrlx withdrawii for cash 11 per cent. 





The fixing rets* ere the arithmetical means, rounded to the nearest one-sixteenth, 
of the bid end offered rates for 9Mm quoted by the market to five reference banks 
at 11 am each working day. The banks are National Westminster Bank. Bank of 
Tokyo, Deutsche Bank. Bsnque National* de Paris and Morgan Guaranty Trust. 


EUROCURRENCIES 

£ rates firm 

Eurocurrency rates showed 
little ctoange yesterday, apart 
from Eurodollars And Euro- 
sterling, winch tender to move 
is apposite directions for most of 
the day. Growing fears about 
a major conflict over the FaJk- 
lands pushed up Eurosterling 
rates hi early trading, although 
rales fell back slightly in the 
afternoon cm the -.ack of any 
further news from the South 
Atlantic. 

EurodoiLars retreated at first 
following the fall in last week's 
UJ5. money supply, but recovered 
some of tile lost ground after 
lunch, although stifl finishing 
below Friday's levels. 'Die 
narrowing differentials between 
dollar and sterling interest 
rates led to a fall in the 
dollar's forward discount against 
tile pound. Lower Eurodollar 
rates also reduced the premium 
of the stronger European cur- 
rencies. such -as the D-mark acd 
Swiss franc, against the U.S. unit. 


Finema DUeoairt; ■ Eligible : Plrre 

Hons* Company Market ;Trea*orv j Bank i Trade 
Pwtet* Popwiw 1 Deposits j Buit» } ante | bjiu* 

- - - - 


Sits 

13-13 lg' 


13rl 14 i b 

15( b 157a 

15t« 137 b 

13-1318 13*4 


Can* Life IMt Tmt (topi Ltd. 

24 High St. Pcerrs Bw, Hwto P. Bar 51122 

Cm-fienD-st fi08 S3 .._.J 

D0.6ea.taam mS 753. 478 

2?-r?SL Wst — 3&.4d -ai rtT 

DalpcAccim. *L2 6Mj a70 

GB& Pad. M.TVwt.1252 26il ..Hj 12S2 

Capri (Janet) «**t LM. 

100, OB Bread SUECZNlBa 01-5886010 

CsptoL- KL3 124JU -J 231 

Income — ^ te3 983 ...1 R14 

North Amerian. .[U5.9 is3 .. J 151 

Prim m tart i tet M k 

Cnr. Sebag (Wt Trial Ifomgmd) 

57/63. Wacas S>_ Vaxtetw 061-2365685 
Carr, Sebag Cap. -02 150 

tosasioM ^13 ?£ 

QariiKO Orart« N/R FondS 

la» Moorqatc, uiooon, ELS. OX-6384121 

sagis^H m Ida 

Ctettkt Offidri bmrf. Foodti 

77 Lotaon W5C, EC2N lOfi. 01-S381S15 

sjsss5=i m i=j “ 

CtotoArin Irinfi Itongi! 

U,Newa,KW4TP 


Vs Eaten TsL <2)_[3kZ 

Bade fearcsTst. .3(5 

tore SrejtfjTaL —BAfi 

Prat 4 Git 7:2 Ea& 

SaaSefCoisTrasf 

Cha ri g rt wi RjnmwB«(B) 

57^63, PruwasSuMashester. 061-365685 

MedembM Funds Mgt Ltd. (*) 

50, Chancery Ubc, WCZA1HE, 01-2420282 
GrtMhFund I7M 82.P J AM 



Key Food Mangers Ltd. UXg) 
U3.WreNpSL.EC2A2A& 01-62B6626. 

» 

KeyRreJ 

Key Smn Co's E=d — 0741 MTfl +Zj6I 04 






















































































5 iSiSiS i§ 
















































|| S fj Centra! to 
f'j n i i Britain’s heating 

“ " Lj Hsstnn and Piumbino Merchants. . 


“ u L4 Hsstng and Plumbing Merchants. • 
• ann snC Garden Machinery. Engineering. Plastics. 



Financial Times Monday April 2*x 




SHARE INFORMATION 


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Developing 
states hit by 
short-term 
loan costs 

By Peter Marrtagnon. 
Euromarkets Correspondent 

more developing states 

could face foreign exchange 
cash-flow problems because of 
a growing tendency to take up 
short-term loans, says an Ames 
Bank study. 

It is published In the bank's 
latest monthly review, it shows 
that debt service payments by 
developing nations are much 
higher than suggested by many 
conventional analyses. These 
ignore short-term credit repay- 
ments to commercial banks. 
Last year payments of 
interest and principal by 
developing states on their 
medium- and long-term debt 
totalled afiChn (£38.9bn) only. 
If short-term obligations are 
included, however, the total 
nses to $175bn. This is half of 
"their earnings from visibte and 
invisible exports. 

The study covers all develop- 
ing states except oil-exporting 
a&tkms that have large balance 
of payments surpluses, such as 
Saudi Arabia, Kuwait and the 
United Arab Emirates. 

States which export oil but 
still _ borrow heavily, such as 
Mexico .and Indonesia, are in- 
cluded. So are all developing 
nations of Africa, Latin America 
and Asia. 

Since 1977 total debt service 
payments by developing states 
have tripled. Am ex says, while 
debt service payments on 
medium- and long-term debt 
have only doubled. 

The bank says cash-flow man- 
agement has become crucial for 


LDC DEBT REPAYMENTS TO 
COMMERCIAL BANKS 


Ail bank cr which 


MUBARAK CALLS FOR PEACE INITIATIVE 


1 THE LEX COLUMN 



developing states because debt 
problems usually surface first 
in the area of short-term credit. 

A state using short-term 
credit to compensate for lower- 
than-expected commodity-export 
revenues risks export shortfall 
being not just temporary. It 
thus has to finance long-term 
needs with short-term borrow- 
ing. the bank says. 

As a borrower it becomes 
highly vulnerable to a sudden 
loss of confidence by lenders 
or to a bunching of repayment 
dates. 

Mexico is borrowing heavily 
in short-term markets and 
Argentina, whose financial 
problems have been 
compounded by the Falktands 
crisis, is traditionally a heavy 
receiver of short-term funds. 

Details, Page 28 



UK TODAY 

MOSTLY dry with sunny inter- 
vals. A little drizzle in the 
South-East at first 
London, S. and S-E. England, 
Channel Islands 
A little drinsle at first, becom- 
ing brighter and mainly dry. 
Max 14C to 15C C57F to 59F). 
Aberdeen area, Central 
Highlands and N. Scotland 
Cloudy throughout, with a 
little Tain or drizzle at limes. 
Patchy -hill fog. Max IOC to 
12C (50F to 54F). 

Best of the country 
Dry with sunny or clear 
intervals. Max 14C to u 16C 
(57F to 61F). 

Outlook: Cloudy, cool and 
showery in Central and 
Northern districts. Mainly dry 
and warm in the South. 

WORLDWIDE 


Israelis shoot at demo 


BY CHARLES RICHARDS M CAIRO AND DAVID LENNON IN TEL AVIV 


ISRAELI troops fired on 
Palestinian demonstrators in 
the occupied West Bank yes- 
terday as President Hosni 
Mubarak. the Egyptian 
leader, marked Cairo's first 
fall day of control- over the 
Sinai in -nearly 16 years fay 
calling on other Arab conn* 
tries to make peace with the 
Jewish stale. 

In spite of speculation dar- 
ing the lead-up to Israel’s 
withdrawal from Sinai on 
Sunday. Air Mubarak held 
hack from making any over- 
tures to the moderate Arab 
Gulf states who are reported 
to be seeking an early rap- 
prochement with Cairo. 

But he criticised the Israeli 
policy of expanding Jewish 
settlements on Ihe West 
Bank, which, he said, “ cannot 
but heighten turmoil in the 
area, increase the gap 
between Israel and the Arabs 
and revive suspicions and 

doubts." 


The Egyptian leader said 
he looked forward to a 
resumption in the near future 
of talks -with Israel on self- 
rule for the Palestinian 
Inhabitants of the West Bank. 

Both Jerusalem and Cairo 
evidently expect an intensive 
U.S. diplomatic effort to bring 
to a conclusion'— which should 
have been reached . by the 
deadline for the Israeli with- 
drawal from Sinai — the 
negotiations on the establish- 
ment of a ** self-governing 
authority.” foreseen by the 
original Camp David aecords. 

Dr Yosef Burg. Israeli 
Minister of the Interior, who 
heads his country's team in 
the negotiations, said yester- 
day that the time had come 
to resume the aatonomy talks 
broken off two months ago. 

Egypt and the U.S. should 
M know exactly that Judea 
and Samaria and Gaza and 
Golan are oars and there is 
no discussion about ... put- 


ting any state there,” he 
asserted in a radio interview. 

Anti-Israel demonstrations 
continued in the West 
Bank yesterday. Stone- 
throwing Palestinians pro- 
testing against the Israeli 
occupation — and what they 
fear is Egypt’s abandonment 
of their cause — were dis- 
persed by soldiers in a num- 
ber of towns and villages. 

In one incident, at the 
village of Yamoun, Israeli 
troops shot and wounded two 
Palestinians, one of them a 
child of nine. 

An interim arrangement 
between Egypt and Israel has 
been reached over their un- 
resolved dispute concerning 
between 600 and 700 metres 
of Red Sea coastline south of 
...Eilat and the demarcation of 
the border there. 

Under a deal worked out 
by Mr Walter StoesseL US. 
Deputy Secretary of State, 


the area' known as Tabs, 
where Israeli interests have 
developed a holiday resort 
and begun building a luxury 
hotel, wfll be placed under 
the control-' of the multi- 
national force in Sinai until a 
final agreement is reached. 

The border checkpoint -was 
dosed there yesterday bat an 
estimated 2,000 people passed 
through the one at Rafah. 
linking (he Gaza Strip and 
newly - recovered Egyptian 
territory. The one further 
south at Nitzana was also 
busy. 

At Rafah, however, the 
Israeli side of the town was 
placed under curfew after 
anti-Israeli pretests by Pales- 
tinian residents. Israeli troops 
patrolled the streets up to 
the coils of barbed wire mark- 
ing the border, .which runs 
through . the centre of the 
town at the southern end of 
the occupied Gaza Strip. 


EEC firm on export credit rates 


Y'dayr 
midday 
°C *F 

Ajaccio C 16 61 L. Ang. t — — 

Algiers F 16 BILuxmbg. C 9 48 

Amsdm. C 11 52L<isor S 32 EO 

Athens — — Madrid C 14 57 

Bahrain S 3* 93 Majorca F 18 fr- 

Barelna. S 17 63 Malaga F 13 64 

Beirut — — Malta R 13 55 

Belfast F 14 57Mchstr. F 15 S9 

Belqrd. C 13 SSMalbne. — — 

Berlin' C 12 54 Mx. C.t _ ZT 
Biarritz S 74 57Miaiflit R 22 72 

Bmghm. C 13 55Milan S 17. 63 

BlackpT S 12 MMontrTt F 12 54 

Botdx. ■ S 17 63MOICOW F 10 50 

Bouton. C 10 SOMumch C 10 50 

Bristol C 16 81 Nairobi C 25 77 

Brussels C 9 48Naplea C 13 55 

Budoat. F 13 55 Nassau — — 

CaiiJT- - C 13 66Nwc«t1. C 12 54 

Cardiff C 16 61 N Yorkt C 13 55 

casbea. c 19 66 N,m S 18 64 

Cape T. C 18 6a Nicosia S 22 7! 

Chicg.t — — Oporto S 18 64 

Colegna C 9 48 Oslo S 12 54 

Cpnhgn. S 13 55Paris C 13 55 

Cbrtu S IS 64 Penh S 19 65 

Denvorf F 3 37 Prague C 7 45 

Dublin S 75 59Hy*:jw*. C 6 43 

Dbivnlc. S 76 61 Rhodes S 18 64 

Ednbgh. S 14 S7RioJ’ot — — 

Faro F 19 68Romfl F 17 63 

Florence' S 20 68Sal:b'rg C 12 5* 

Frankft C 9 4BS'clseot — — 

Funchal — — S. M’ritz — — 

Geneva S 14 B? Singapr. F 32 90 

Gibrltr. C 16 MS-nsgot — — 

Glasq'w S IS SSStcklwn. C 7 45 

G’rnsey S 11 SZSirasb'q C 15 59 

Helsinki C 7 46 Sydney — — 

H. Kong C 24 75 Tangier F 15 59 

PrtnSbf'k S 13 55 Tel Aviv — — 

Invrnss. C 13 55 Tenerife S 17 63 

l.o.Man S 12 54 Tokyo F 22 72 

Istanbul S 13 55Tor ntof F 71 52 

Jersey S 13 55Tunis C 17 63 

JO' burp F IS 64Valeneia S 17 63 

L. Rims. F 2 2 72 Van. co S 17 63 

Lisbon S 18 64 v.«nna — — 

Locarno S 18 B4War»aw R 7 45 

London C 12 54 Zurich S 12 54 

C— Cloudy. F— Fair. R— Ram. S— Sunny 
t Noon GMT 'temperatures,. ' 


BY JOHN WYLES IN BRUSSELS 

EEC GOVERNMENTS decided 
yesterday to: resist any increase 
in the internationally agreed 
interest rates attached to official 
export credits. They agreed to 
stand fast after a prolonged dis- 
cussion in Luxembourg which 
reflected strong resentment 
about high U.S. interest rates. 

The decision by EEC Finance 
Ministers leaves the U.S. to 
make the running in negoti- 
ations in Paris next week in 
favour of raining interest rates 
for export credits. But the Ten 
did close ranks with the U.S. on 
the issue of -reclassifying some 
countries, notably the USSR, so 
that they receive less favourable 
subsidised interest rates. 

As expected, Mr Jacques 
Delors, the French Finance 
Minister, led the attack on a 
European Commission pro- 
posal to seek increases ranging 
from 0.25 to 1.25 percentage 
points in the sc -called “Con- 
sensus " rates. 


He linked his opposition with 
Europe's growing pressure on 
the Reagan Administration to 
take steps to lower U.S. interest 
rates in general, which is 
expected to reach a climax at 
the seven-nation world 
economic summit in Versailles 
in June. 

The French Minister is said 
to have argued that any need 
to raise interest rates for export 
credits stemmed directly from 
the impact of U.S. domestic 
rates on the cost of international 
credit. If the Consensus rates 
were raised, there would be less 
external pressure on the U.S. to 
lower its domestic rates. 

The 22 nations participating 
in the Consensus increased the 
interest rates for export credits 
by 2.25-2.5 percentage points 
last November and agreed to 
review them after six months. 
Yesterday’s decision means 
that the Commission, which will 
represent the Ten in Paris on 


May 6 and 7, will fight to. keep 
any interest rate increases to a 

minimum. 

However, it will take the 
initiative in -proposing that all 
countries with a per capita 
income above $4,000 (£2,250) a 
year should be categorised as 
" relatively-rich " on the world 
scale and therefore be required 
to pay interest rates on credits 
for this category of country, 
which are currently 11-11.25 per 
cent. 

This would affect the Soviet 
Union, East Germany and 
Czechoslovakia, as well as 
Israel and Spain among others. 

This move was originally 
triggered by the declaration of 
martial law in Poland and the 
West's intention to penalise the . 
Soviet Union through re- 
classification. The inclusion of 
other countries in the exercise 
is intended to counter com- 
plaints of an unjustified politi- 
cal move, singling out the 
Soviet Union. 


The Ten also want -to re- 
classify a n umb er of newly- 
industrialised countries, raising 
them from the category of 
“relatively poor” to “inter- 
mediate.” ' This would mean 
that they. too. would have to 
pay more for their credits. 

These countries, including 
Singapore, Hong Kong and. 
South Korea, would be allowed 
a two-year transition period 
before being fully charged the 
intermediate rates, now set at 
10.5-11 per cent compared with 
the 10 per ceot which they are 
paying at present 

Community Finance Ministers 
also agreed to resist any moves 
by Japan to lower the 9.25 per 
cent rate it is required to attach 
to its official export credits. 

The EEC also agreed that 
there should be no change in 
agreements covering so-called 
mixed credits, a mixture of 
export credits and aid funds 
which give the borrower a lower 
net interest rate. 


Government to press ahead with c ”“ ** Bw 1 
major review of bank taxation 


BY WILLIAM HALL, BANKING CORRESPONDENT 


Ol UallK taxation J£ m 3iAgE2 

achieved in the late 1950s when 

DRRESPONDENT the company was earning about 

one-for-all ” profits tax m leasing and double taxation in todudine 

lai wklri. Ihp nirranl Vinanro Rill . f * 331 >ear - . V en “CmOing 


THE Government plans a “one-for-all” profits tax m leasing and double taxat 

thorough review of the form 1981. which raised nearly the current Finance Bill. « ; ntprps t rereived it was nnlv vn 

and scale ot UK hank uxajum. £«Kta. Several bank cteirmau «K STSfSS 

This has been made clear to At the moment they pay rela- annoyed by what they see as ^ it 4 
the Big Four clearing banks lively-little tax as they have Government's failure to ^ ODer atiM profit fell 

since the Budget and it has been expanding their leasing understand their portion. Mr gnt Sfm Sm to 

come as a shock to some, who business rapidly and sharing 3° buj Lmgh-Pemberton, chair- £ 13 0m last vear hut n« interest 


fllrendv - 1 -™ w Bank last week described tfie ru S e TO uwiu. 

Lax already. capital allowances with their Gh^ceHok SmmSSa^ d “ About haH the interest was 

Sir Jeremy Morse, chairman customers, who often do not justified and rame.” ^ acounted for by payments by 

of Lloyds Bank and chairman earn enough to take advantage , __ fvno th . the U.S. parent group in respect 

of the Committee of London of the allowances. of loajQS Made *7 Ford of 

Clearing Banks (CLCB) is The Government realises that to? Britain. during last year. ! 

beheved to have met Sir ^ k t^es l0 ensure that the <?e Bie^iir^Sn company said the £656m 

Geoffrey Rowe, the Chancellor, banks pay what many would see j n terms than the four now been repaid by the 
*5? Sr n rvnffrev? as a “"re equitable amount of biggest U.sfbanks. They are a US. group. It claimed that the 1 

meat -in the Budget lari month to* there is a danger that the natural target for a Government °f_ interest received was , 

that “we shall need to give banIiS ^ simply shift the anxious to raise money, there- ^ ave 

™ch further thought Si toe burden on to cutfomere. -fore. obtained, m Britain, 

coming year to the problem of l5 . understood that there The original levy on. bank The British company was. one 
how best to ensure a sufficient are differing views in the profits is generally considered of the few profitable Ford sub- : 
contribution to tax revenues Treasury and the Inland to have been clumsy. sidiaries last year when ti*e i 


sidiaries last year when t^e 


from the banking sector.” Revenue about mis. It as un- The authonties were forced U.S. group recorded a world- 

TTnHn .v RiiAdAt likely that officials wUl begin to pump £7.3m into the wide net loss of SL06bu foUovr- 

until the Budget, the banks WO rk on the issues raised until Government-owned National jug a $1.54bn loss for 1980. 

beheved they had proven their the end of the summer. Girobank to restore its capital Ford of Germany has still to 

case about the adequacy of Id the meantime, the banks base because much of its tax report but is believed to have 


case about the adequacy of 


their tax contribiition after the face a battle with the Govern- payment had to come from done a little better -than break- 
Covemmenl's imposition of a meat over measures affecting reserves. even. 

The depressed state of the 

- parent group’s finances forced 

■fTfe it to cut bonuses paid to senior 

FreSSlire §TOWS Continued from Page 1 ^^resuit^M? 1 To? earned 

£52,591 last year while in the 

Foreign Secretary. Mr John time was short for the British New York. first nine months of 1980 before 


Continued from Page 1 


Foreign Secretary. Mr John time was short for the British New York. 


Nott. the Defence Secretary. Mr naval task force because of The possibility of Mr Haig he left Ford of Britain, Sir 

m'ddav William Whitelaw. Home Secre- weather conditions, there would making some progress during Terence Beckett was paid 

■c ®f tori’- and Mr Cecil Parkinson, seem little opportunity for an talks with Sr Costa Mendez, the £87,000. 

— — chairman of the Conservative alternative diplomatic effort to Argentine Foreign Minister, was Ford was the only major UK 

® £8 Party, as well as defence be launched should Mr Haig not discounted. However “ the vehicle group to prodace proSfs 

7X 57 chiefsl met yesterday morning decide to call it a day. imprecision of the Argentine last year. BL’s pre-tax loss was 

is 6c for 75 minutes to review the There also seems little decision-making process, which £3 32. 9m while Vauxhall’s was 

is 64 position. chance of Britain returning to sometimes makes them rather £57. 4m. Talbot UK has still.; 


.The full Cabinet will meet the United Nations Security erratic,” was also emphasised to report but for the half-year 

tomorrow rather than today, to Council. It was stated in along with the' overall its loss was £47m. 

allow Mr Pym to attend a meet- Whitehall that the British “ obduracy ’’ of the military Ford’s capital expenditure 
mg of EEC Foreign Ministers Government wished to see UN junta. was £280m in 1981, well below 

which had been postponed from Resolution 502 implemented The issue of Argentine with- the £3 24m for 1980. Ford says 


yesterday. 


and in the meantime did not drawal from the Faiklands the figure was below average 


An opinion poll conducted by ^ what benefits would accrue appears still to be the vitad because “it came between, two 
MORI for the BBC Panorama from further recourse to the sine qua non for the British years of peak product invest- 


— — programme confirms steadily Security Council- 


Government. it is hinted that meat Further committed spend- 


growing support for Govern- Officials noted that Mr Denis if London was absolutely mg of £503m marks a sharp 
i! &4 menl handling of the crisis. The Healey, deputy leader of the convinced that there would be increase over the £442m In the 

22 72 survey conducted on Friday Labour Party, had also appeared a total Argentine withdrawal pipeline a year earlier.” 

18 84 and Saturday before the South to be rather less enthusiastic then the rest of the negotiating The average number employed 

i3 Is Georgia invasion, shows that about the opportunities offered process would be somewhat fell 5.66 per cent during last 

19 just over three-quarters of by the UN following his trip to eased. year from 76,000 to 71,700: 

£ adults are satisfied with the ~ 1 4 : 

4 w Government's handling of the "U 9 j • m 

l a SSHS Polite invasion Continued from Page ^ 

715 


Polite invasion Continued from Page l 

He said he could not give on the rest of the 50ship task 


Liberal Alliance failing back to 
28 per cent. 


helicopters and their weapons, began more than • harbour. 


helicopters 


m" ul _ rwc involved in the operation, or three a S° utd so it was opened fire and scored three 

JZK "SSSS, 1 ^ even on the number of Royal **«"**- . ■ ■ ■ . <Mrectttts. • . 


cials in Whitehall would not ^ paratroopers. On Donkin said file action With, smoke and oil belching 

discuss alternatives th^ point he saidT“I c an retake South Georgia, ' a from its conning tower, the sub- 

Haig s mediation efforts because , there were far less of desolate island 800 miles from, marine — later identified as the 
by doing so they might “ under- mere jvere tar less of Faik]and , b „ an at dMlon 40-year-old Santa Fd-fafled to 


the ^ancesof American « than of them." 


the Faiklands, began at dawn, on 40-year-old Santa F6 — failed to 
Sunday when British heUcopters make the jetty, limped to the 


Ford UK seems to be ticking 
over nicely —operating profits, 
in -1981 slipped only £9m -to 
£l30m, while: -after interest 
receivable pretax . profits mo 
£6m lower at £220m. The two 
halves of the year seem to have 
been roughly similar, whereas 
in 1980 all the- operating profit 
arose in the first half. 

Much of the interest income 
accrues to Ford in its capacity 
as First International Bank of 
Dagenham. At the end of 1981 
the company held £656m of its 
U.S. parent’s promissory notes, 
which have now — according to 
the report prepared for em- 
ployees— been. repaid. ‘ Periodic 
lending to the parent is 
certainly more lax-efficient than 
paying it a dividend, even 
though Ford’s .1 mainstream, 
corporation tax charge moved 
up last yearns capital spending 
passed through- a temporary 
trough. •’ •; . 

Where does oUthe cash come 
from ' to -lend - to : "4>e&oIt? ‘ 
Roughly half of it represented 
existing. Ifcfofy. balances, while 
the business iS gftn^catog a. 
comfortable snrphis. K^0I no? 
surprise the -London* zOooey 
market to see that bills ^ payable 
are up by fiioni; effe<a5yely, 
Ford is borrowing from the UK 
banking system— probably from 
the Bank of England JtseEf^-to 
finance a doDardenoimnated 
monetary asset And. . then 
creditors have jumped by B5 
per cent, or £246m, compared 
with a 5 per cent rise in sales. 
The sums owed.to Ford's fellow- 
subsidiaries are up by. nearly 60 
per cent to £200m. 

Ford’s recent price adjust- 
ments In the UK car market 
amount to an admisaon that 
the pricing structure— winch 
admits cheap "parallel imports' 1 
from Europe— is aw^’. This 
goes some ' way towards 
explaining why. ra defiance of 
labour productivity, , Dagenham 
makes so much more money 
than Cologne. Ift s only fair 
to add that the topoMh e-ranee 
cars made in Germany have 
suffered more in the recession 
than the UK-built models. 

Hongkong Land 

As every canny Monopoly - 
player knows, control of the 
high-rent neighbourhoods holds 
the key to success. Hongkong 
Land 1ms buDt its prosperity on 
the rents available in Central 
District the dark blue section 
of the board, and has been wise 
enough to treat its projects 
there as investments rather 
than trading properties. 

But after its recent purchase 
of the Connaught II site for 


.■■■ n i excited about the discount horae 

t V- - n a 1 - cvbiY sector, whiA bas been under- 
Juufex rose UJ tomU performing for more than a 
. . ... V :r.:.L. . year, e^eciaQy as April will 

.... . . - have been a testing month. 

CUve claims to have had a 
■ i ■■ . i ^ . very defensive book at its year 

S '- end. - Over the following few 

days, short-dated gilt-edged 
gtoek fell IF. points, and three 
discount houses have j'cars end- 
: ing April 5th. ■. - 

Simon Eng. 

Simps -Engineering’s interim 
. Li*. ■ .1 1i figures came out at a jouriry 

..nscount i time last September, atrt the 

. to . Hou ses small pre-tax shortfall was 

-I • • . enough to chop the share price 
; FT.TteuErJas .■ down by a - tenth. But for the 

6t jJ*jgggjBdgL- -» full year the company has main- 
4 qm 1*82 Mined its growth track even 

> ■■ ■ 1 ' ' ' i i 1 1 mTi / though . overall .-volume . has 

v . .. ■ changed UtQe, producing A £lm 

. ' . i' •. "-iocrease tofSaSin. -• '■ 

HK*4^n, lmxd is finding that - . . <r : a 

thtf blue-chip areas are almost A Jg McBwl ri Mnafflir^ Of tne 
fim tagn man y -toaiKtiai.iBi’l^buriness hasflyo- 

Mels ^iWthoi^reSSg 
ttearulefc iW is -^fOoping 

tiw less exnrtisfcvetifetrida, bat *0po-eng|iwei4ng-. equipment 

-Is business, of 

ereking hotels to the -Oid Krot 

Beloit has tumeditsattefr KSiShSiJ! 
tion to the utilities.- U5, has benefited from healthy 

- denJ «fi and.an requiritioa. The 

jjdeoitwtoark jn lhe current 
'■** ^performance of the 
U-S- economy bat without last 
nn‘r^ y ear ' s redundancy costs of 

oLE? £450.«» taken above the line. 

profits may move above £22m. 

Electric shares yield oidy AJ3 

per cent at Land’s^ top pvchase ^ 

price of $8.75. But utilitiM offer cn™ 1 cost earnings. 

■Wtfi quality earnings growth, 
together with some tidy assets, 1 

and Land is buying when the lUStimnonal funds 

of the other players, after ., Tb « latest ^figures-fwinsthu- 
several years of heavy buying, tl0na j c “ h flow, underlie how 
are a little straw>ed for cask M«Placed were earlier fears 
- . ; rixmt a squeeze: In spite of 

the sei’erest recession since the 

Clive Discount V war - ,‘the life insurance an -1 

pension funds have seen an 
Clive Discount made a modest '.iucr ca se in cash inflows in 1981 
loss in the first half of its comforeably above the level of 
financial year to March 31; the Inflation, at .15 per cent. The 
interim balance sheet coincided uam in the second' half was 
almost exactly with the peak in smaller, a* 64 per. cent, but tins 
short-term interest rates. Since may well represent the trough, 
then tbe markets have been Meanwhile, -the -level of 
much kinder, with base rates Investment in overseas equities 
down 3 points In o months, -and seems to have stabilised well 
Qive has announced a profit below the peak reached in the 
of £l.Q9m against £lD3m. in ^vly part of .1981, Neveriht- 
each case after a transfer to jess, reduction here does not 
inner reserves. seem to- have brought about any 

So there has been, some pro- switch into UK equities. The 
gross in rebuilding the capital institutions have been investing 
base, and meanwhile the. shares less in the stock market than 
at 28p yield 8.7 per cent But would maintain tile traditional 
Clive's figures are not spectacu- weighting of UK shares in their 
lar . enough to get Investors portfolios. ■ 


japd is finding that 
thtf blue-chip areas are almost 
full 'up. It .aannot many 

move hotels 'iWtfaout breaking 
ftedraleft. Lgnfl is -developing 
tiie jess expensive ^dfetriett, bat 
•is really in the business, of 
erecting hotels is the <8d* Kan t 
Road. So it has turned its atten- 
tion to the -.utilities.-- • 

- yesterday’s initial mrebase of 
20 per cent of HK Electric 
through a consortium for around 
$1.6bn followed a s imita r raid 
on HK Telephone lest December,. 
Over the short term. Land 
would have done better to leave 
its rental income with fte Bank. 
Electric shares yield only A3 
per cent at Land'xtop purchase 
price of $8.75. But utilities offer 
high quality earttings growth, 
together with some tidy assets, 
and Land is buying when the 
market is depressed and some 
of the other players, after 
several years of heavy buying, 
are a little strapped for cash; 

Give Discount V- 

Clive Discount made a modest 
loss in' the first half of its 
financial year to March 31; the 
interim balance sheet coincided 
almost exactly with the peak in 
short-term interest rates. Since 
then the markets have been 
much.. kinder, with base rates 
down 3 points in A months, mid 
Clive has announced a profit, 
of £l.(£m against £L03m. in 
each case after a transfer to 
inner reserves. . ■ 

So there has bfien. some pro- 
gress in rebuilding the capital 
base, and meanwhile the. shares 
at 28p yield 8.7 per cent Biit 
Clive's figures are not spectacu- 
lar. enough to get investors 




An ideal corporate investment , 
yielding holiday opportunities throughout 
- the world - 

Court Barton Property PLC 
South Devon - 


restaurant and bar; swipunmgpool, tennis court, stables, sauna/ 
solarinm, fly fishing, rough shcwtmgand <3bse'to golf and numerous 

■watersports. v 

Investment Advantages: . 

★ An investment in a UK public company which owns tbe 

freehold. _ _ 

★ Capital asset wthgipwdi potentiali\. . - 

★ ©CT. Exchange felitKffwmidwTde.- :. 

★ Possiblertax advantages: ’ i ‘ ‘ . 

Helicopter inspectionavailaHe. • . 


will beaccep ted, apply.fr): 

SAYHI&- - ^ 

Rolfes House, ... 
60MiIftHxiSiieet/ ’ 
Salffibiny, • 

Wilts. SP12BP ‘ 

Tel: (0722) 20422. .. 
Telex: 477505 v 



success.’ Nenher he nor a .Defence flew over the old whaling-station beach and. apparently then dis- 

But with Mrs Thatcher having Ministry spokesman at bis side of . Grytviken on a reconnais. gorged its crew and marine | ; 
stressed in the Commons that was able to grve any more news sance. ' reinforcements in a rnsh, '* 




oMh* BuMisjMr.- 
-p« Fi«*nw#t- Tfyrna Ltu . 
F»n«nci«l ,Tinw» 1902. 






V-ifT-